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
Take the cost price as C, so the marked price is 1.6C. At a 15% discount the selling price is 1.6C × 0.85 = 1.36C, a profit of 0.36C; at 20% it is 1.6C × 0.80 = 1.28C, a profit of 0.28C.
The fall of 0.08C equals ₹32, so C = ₹400. At a 25% discount the selling price is 1.6 × 400 × 0.75 = ₹480, giving a profit of 480 − 400 = ₹80.