The marked price of a chair is 30 percent more than its cost price. If the chair is sold for Rs. 200 after a discount of Rs. 40, then what will be the profit percentage?
Answer & explanation
Correct answer: option 1
Let the cost price = m
Marked price = m + 30% of m = Rs. 1.3m
Discount = 40
Selling price = 1.3m – 40
According to the question,
⇒ 1.3m – 40 = 200
⇒ 1.3m = 240
⇒ m = \(\frac{2400}{13}\)
⇒ Cost price = Rs. \(\frac{2400}{13}\)
Profit = 200 - \(\frac{2400}{13}\) = \(\frac{200}{13}\)
Profit % = \(\frac{200}{13}\) × 100 × \(\frac{13}{2400}\) = 8.34%