CAT 2017 Question Paper (Shift-1) Question 72

Question 72

If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?

Solution

Let the retail price be M and cost price be C.

Given,

0.85 M = 1.02 C

M = 1.2 C

If he wants 20% profit he has to sell at 1.2C, which is nothing but the retail price.


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Comments
Anjali Chindalia

2 months ago

Hello sir,
I have solved this ques as:
Let the retail price be 100
After 15% discount on the retail price given= 85
After discounted price= 85
2% of 85 = 1.7
Actual cost of the product becomes 83.3
20% of 83.3= 16.66
So, 83.33+16.66= 99.9 or 100
So to ensure she makes a profit of 20% she needs to sell at retail price which I have taken as 100.
Is this the right way of solving these types of questions?? Kindly guide me here

cracku

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