Anna marks up the price of a toy car by 50% and then allows a discount of 20% and sells it to Bajaj. Bajaj sells it for Rs. 20 more than what he purchased for, this S.P is 30% more than the original C.P of the toy car. Then Bajaj’s profit % is:
Solution
Correct Answer: Option D
Assume that cost price of toy car for Anna = Rs. C
Anna marks up the price of the toy car by 50%
∴ The marked price = C + 50% of C = 1.5C
Anna allows a discount of 20% and sells it to Bajaj.
The amount Anna receives after providing discount = marked price – 20% of marked price
= 1.5C – 20% of 1.5C
= 1.2C
∴ Bajaj purchased it for Rs. 1.2C
Bajaj sells it for Rs. 20 more than what he purchased for.
Selling price of toy car for Bajaj = Rs. (1.2C + 20)
This S.P is 30% more than the original C.P of the toy car.
⇒ 1.2C + 20 = C + 30% of C
⇒ 0.1C = 20
⇒ C = Rs. 200
Now, Bajaj’s profit % is:
\(\% \;profit = \;\frac{{{\rm{selling\;price\;for\;bajaj}} - {\rm{cost\;price\;for\;Bajaj}}}}{{{\rm{cost\;price\;for\;Bajaj}}}} \times 100\)
\(\Rightarrow \% \;profit = \;\frac{{\left( {1.2{\rm{C\;}} + {\rm{\;}}20} \right) - 1.2{\rm{C}}}}{{1.2{\rm{C}}}} \times 100\; = \;8.33\) [Using C = Rs. 200]
Practice More Questions on Our App!
Download our app for free and access thousands of MCQ questions with detailed solutions