A shopkeeper gives 20% commission on the retail price of one article and earns 5% profit. If his commission is reduced by 10%, then what is his approximate profit percentage? (Nearest integral value)
Answer & explanation
Correct answer: option 1
Shopkeeper gives 20% commission on the retail price of one article and earns 5% profit means,
80% of MP = 105% of CP
\(\frac{MP}{CP}\) = \(\frac{21}{16}\)
If the commission reduced to 10% means,
90% of MP = x% of CP
\(\frac{MP}{CP}\) = \(\frac{18.9}{16}\)
Profit = 18.9 - 16 = 2.9
Profit % = \(\frac{1.9 × 100}{16}\) = 18%