A shopkeeper marks up the worth of his product by 60%. If he increases the discount from 15% to 20%, his profit will be decreased by ₹32. How much profit/loss would he get, if he offered a 25% discount on the marked price?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 80
Both discounts are taken on the same marked price, so the extra 5% discount is the whole fall in profit. That fall (₹32) fixes the cost price, and the profit at 25% follows.
Assuming the cost price to be 100:
Marked price, 60% above cost: \(100+60=160\)
At 15% discount: selling price \(=0.85\times160=136\), profit \(=36\)
At 20% discount: selling price \(=0.80\times160=128\), profit \(=28\)
Fall in profit: \(36-28=8\) parts \(=\) ₹32, so 1 part \(=\) ₹4
At 25% discount:
Selling price \(=0.75\times160=120\), so the profit is \(120-100=20\) parts
Profit in rupees: \(20\times4=\) ₹80