The marked price of a chair is 150% of its cost price. A discount of 30% is given while selling the chair. What is the profit percentage?
Answer & explanation
Correct answer: option 2
Marked Price of Chair, M = 150% of its cost price, C = 1.5 C
Selling price with 30% discount, S = 0.7 of M = 0.7 (1.5C)
Profit percentage = (S-C)×100/C =(0.7×1.5C - C)×100/C = (1.05C-C)×100/C = 0.05×100
The correct answer is Option (2) → 5%