Question

The marked price of an electric iron is Rs.300. The shopkeeper allows a discount of 12% and still gains 10%. If no discount is allowed his gain percentage would have been
(A). 20%
(B). 25%
(C). 27%
(D). 30%

Answer 1

Hint: As the marked price is given, find the selling price after applying a discount and treat it as the selling price from which the shopkeeper got 10% profit. Then find the cost price with it. After that take the marked price as selling price and find the profit percent.

Complete step-by-step solution -
The marked price of iron is Rs.300.
So, after applying discount, the discounted price will be,
$\text{Marked}\ \text{price}\times \left( 1-\dfrac{discount}{100} \right)$
We know that the marked price is Rs.300 and discount is 12%, so by substituting data we get,
$300\times \left( 1-\dfrac{12}{100} \right)$
So after simplifying we get,
$300\times \dfrac{88}{100}=3\times 88$
Which is equal to Rs.264
So, the selling price for the shopkeeper was Rs.264 of electric iron.
In the equation it is written that the shopkeeper still gains 10%.
So, if the cost price of iron for a shopkeeper is ‘x’.
Then the selling price will be
$\text{SP}=\text{CP}\left( 1+\dfrac{\text{gain}%}{100} \right)$
Here CP = x and gain% = 10%, so on substituting, we get
$\text{SP}=x\times \left( 1+\dfrac{10}{100} \right)=\dfrac{11x}{10}$
Now we can say that,
$\dfrac{11x}{10}=Rs.264$
So, after solving we get,
$x=264\times \dfrac{10}{11}=Rs.240$
Hence, the cost price of the shopkeeper was Rs.240.
Now in the question we are told that if the discount is not given then what will be the profit percent.
So, then the cost price will remain Rs.240 but the selling price will be marked price Rs.300.
So we will get profit percent using formula,
$ \dfrac{\text{selling price}-\text{cost price}}{\text{cost price}}\times 100\% $
 $ \Rightarrow \dfrac{300-240}{240}\times 100\% $
Now simplifying we get,
  $\dfrac{60}{240}\times 100%=25%$
Hence the profit percent is 25%.
 The correct option is “B”.

NOTE: Students generally confuse between the terms selling price and marked price. The marked price is the price marked on the product without any discount. The selling price is price after calculating the discount and other charges if related.