Question 14

A shopkeeper marks his books at 25% above the cost price. Due to slump in the market, his cost reduces by 5%. And then,to boost his sale, he offered a discount of 8% due to which sales goes up by 25%. Compute the change in the shopkeepers profit.


Let cost price of each article = Rs. 100 and number of articles sold be $$x$$

=> Original selling price price = Rs. 125

=> Original profit = Rs. $$(125-100)x = Rs.$$ $$25x$$

After offering discount of 8%, => New selling price = $$\frac{92}{100}\times125=Rs.$$ $$115$$

Also, new cost price = $$\frac{95}{100}\times100=Rs.$$ $$95$$

$$\because$$ Sale increases by 25%, => Number of articles now sold = $$1.25x$$

=> New profit = Rs. $$(115-95)\times1.25x = Rs.$$ $$25x$$

$$\therefore$$ There is no change in profit.

=> Ans - (A)

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