Question
When a producer allows 36% commission on the retail price of his product, he earns of 8.8%. What would be his profit percent if the commission is reduced by 24%?
Answer: Option B
- Let retail price = Rs. 100 Then, commission = Rs.36
S.P. = Rs. (100-36) = Rs. 64
But, profit =8.8%
C.P. = Rs.(100/108.8 x 64) = Rs 1000/17
Now commission = Rs.12 New S.P.= Rs. (100-12) = Rs.88.
Gain = Rs.(88-1000/17) = Rs. 496/17
Gain% = (496/17 x 17/1000 x 100)% = 49.6%
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- Let retail price = Rs. 100 Then, commission = Rs.36
S.P. = Rs. (100-36) = Rs. 64
But, profit =8.8%
C.P. = Rs.(100/108.8 x 64) = Rs 1000/17
Now commission = Rs.12 New S.P.= Rs. (100-12) = Rs.88.
Gain = Rs.(88-1000/17) = Rs. 496/17
Gain% = (496/17 x 17/1000 x 100)% = 49.6%
Was this answer helpful ?
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