Question

The marked price of a certain commodity is 30% higher than its cost price. A discount of 20% on the marked price makes the selling price Rs. 208. What is the net profit as a percent of cost price?

• A. 10%
• B. 4%
• C. 8%
• D. 12%

Answer 1

The Correct Option is B

Let cost price of article be Rs.100\(x\)
Marked price = Rs.130\(x\)
After 20% discount, selling price =\(\frac{80}{100}\times\) 130\(x\)=208
4 ×26\(x\)=208
\(x=2\)----(i)
Thus, cost price of article = Rs. 200
Therefore, Net profit as percent of cost price =\((\frac{SP-CP}{CP})\times100\)
=\((\frac{208-200}{200})\times100=4\%\)
The correct answer is (B): 4%