ABC26GN2590 · Profit and Loss

Subject: General Aptitude · Chapter: Profit and Loss · Exam: · Marks: · Difficulty:

When a producer allows 36% commission on the retail price of his product, he earns a profit of 8.8%. What would be his profit percent if the commission is reduced by 24%?
Answer
Answer (as printed):
Explanation
Let retail price $=₹ 100$. Then, commission $=₹ 36$. $$\begin{array}{ll} \therefore & \text { S.P. }=₹(100-36)=₹ 64 . \text { But, profit }=8.8 \% . \\ \therefore & \text { C.P. }=₹\left(\frac{100}{108.8} \times 64\right)=₹ \frac{1000}{17} . \end{array}$$ New commission $=₹ 12$. New S.P. $=₹(100-12)=₹ 88$. $$\begin{aligned} & \text { Gain }=₹\left(88-\frac{1000}{17}\right)=₹ \frac{496}{17} . \\ & \therefore \quad \text { Gain } \%=\left(\frac{496}{17} \times \frac{17}{1000} \times 100\right) \%=49.6 \% . \end{aligned}$$

Explanation as extracted from the printed page; notation may be imperfect.

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