To find the profit % made on a transaction which among the following is/are required?
A. Cost Price
B. Market Price and Discount %
C. Discount % of Market Price
D. Cost Price and Discount% on Market Price
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ‘A’ and ‘B’ is required Only
Profit per cent \(\displaystyle =\frac{\text{SP}-\text{CP}}{\text{CP}}\times100\), so both the cost price and the selling price must be known. When goods are sold at a discount, the selling price comes from the market price and the discount: SP \(=\) MP \(\times\) (1 − discount %).
A (Cost Price) gives CP but no selling price, so A alone is not enough
B (Market Price and Discount %) gives the selling price but no CP
A and B together give both CP and SP, so the profit per cent can be found
A with C or with D gives CP and the discount rate only; without the market price the selling price stays unknown