A person marks his 40 items at 20% of the cost price. He sells 10 items at a 10% discount and 20 items at a 15% discount on the marked price. What is the maximum discount (rounded off) he can offer on the remaining items if he still gets some profit?
Answer & explanation
Correct answer: option 2
We have,
Total number of items = 40
MP of the items is more than that of cost price is = 20%
The person sells 10 items at a discount = 10%
He sells 20 items at a discount = 15%
Now according to the question,
Let cost price of each items be Rs. 1
Cost price of 40 items = 1 × 40 = Rs. 40
MP of 40 items = 40 × (120/100) = Rs. 48
Selling price of 10 items = 10 × (120/100) × (90/100) = Rs. 10.8
Selling price of 20 items = 20 × (120/100) × (85/100) = Rs. 20.4
MP of the remaining 10 items = 10 × 120/100 = Rs. 12
Net profit = (12 + 20.4 + 10.8) - Rs. 40 = 43.2 - 40 = Rs. 3.2
If he gives discount Rs. 3.2 on Rs. 12 he gets neither profit nor loss.
Required discount = 3.2/12 × 100 = 26%