Problema Solution
If on an item a company gives 25% discount, they earn 25% profit. If they now give 10% discount then what is the profit percentage.
Answer provided by our tutors
let
Cost Price = $x
Selling Price = $y
after the 25% discount we have
Cost Price = $x
Selling Price = $(1-0.25)y = 0.75y
Profit = 0.25 that is
(Selling Price - Cost Price)/Cost Price = 0.25
(0.75y - x)/x = 0.25
0.75(y/x) - 1 = 0.25
(y/x) = 1.25/0.75
if the discount is 10% we have
Cost Price = $x
Selling Price = (1 - 0.10)y = 0.90y
Profit = (Selling Price - Cost Price)/Cost Price = (0.90y - x)/x = 0.90(y/x) - 1 = 0.90*(1.25/0.75) - 1 = 0.5 or 50%
the Profit percentage is 50%.