If a commission of 10% is given to the customer on the catalog price of a book, the publisher gains 20%. If the commission is increased to 15%, the gain is:
Solution
Correct Answer: Option B
Let CP = 100 and Marked Price = X
SP = 100 + 20% of 100 = 120
10% commission was given on SP
SP = X – 10% of X
120 = X – 10X/100
120 = 9X/10
9X = 1200
X = 1200/9 = 133.33
MP = 133.33
If 15% commission was given, then
SP = 133.33 – 15% of 133.33
SP = 133.33 – 20
SP = 113.33
Gain = 113.33 – 100
% Gain = 13.33%
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