Markup then discount net profit: A shopkeeper marks an article 50% above cost and allows a 30% discount to customers. What is his profit percentage?
Aptitude
Discount
Difficulty: Easy
Choose an option
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A5%
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B10%
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C12%
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D15%
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E0%
Answer
Correct Answer: 5%
Explanation
Introduction / Context:Another chained-percentage question. Apply markup to move from CP to MP, then discount to move from MP to SP. Compare SP with CP to get profit% or loss%.
Given Data / Assumptions:
- Markup = 50% ⇒ MP = 1.50 * CP
- Discount = 30% ⇒ SP = 0.70 * MP
Concept / Approach:Compute SP factor relative to CP: SP = 1.50 * 0.70 * CP = 1.05 * CP. Profit% is then (1.05 − 1)*100% = 5%.
Step-by-Step Solution:
Let CP = 100 MP = 150 SP = 150 * 0.70 = 105 Profit% = (105 − 100) / 100 * 100% = 5%Verification / Alternative check:Direct factor method: 1.50 * 0.70 = 1.05 ⇒ 5% profit.
Why Other Options Are Wrong:10%, 12%, 15% do not follow from the exact multiplicative combination of 50% and 30%.
Common Pitfalls:Adding percentages 50 − 30 = 20 and calling that profit. Percentages chain multiplicatively.
Final Answer:5%