Arithmetic

Profit & Loss

Medium

The owner of a garment shop labelled his articles at 25% above the cost-price. Due to a slump in the market, his cost price was reduced by 5% but he keeps the marked price same. He thus offers a discount of 8%, due to which the sales increase by 25%. Calculate the change in owner's profit?

6% higher

4% lower

Profit remains unchanged.

5% higher

✅ Correct Option: 3

Assume the original cost price is ₹100 per item and 100 items are sold.

Marked Price = Cost Price + 25% of Cost Price

$\text{MP} = 100 + 25$

$\text{MP} = 125$

In the original situation, there is no discount given.

Selling Price = ₹125

Profit per item = 125 - 100 = ₹25

Total Profit = 25 × 100 = ₹2,500

After the slump, the cost price is reduced by 5%.

New Cost Price = 100 - 5% of 100

$\text{New CP} = 100 - 5$

$\text{New CP} = 95$

The marked price remains the same at ₹125.

A discount of 8% is offered on the marked price.

Discount = 8% of 125 = ₹10

New Selling Price = 125 - 10 = ₹115

New Profit per item = Selling Price - Cost Price

New Profit per item = 115 - 95 = ₹20

Sales increase by 25%.

New quantity sold = 100 + 25% of 100

$\text{New quantity} = 100 + 25$

$\text{New quantity} = 125$

New Total Profit = 20 × 125 = ₹2,500

Change in Profit = New Total Profit - Original Total Profit

Change in Profit = 2,500 - 2,500 = ₹0

The profit remains unchanged.

2023: 30 May Shift 3

A wholeseller sells a jacket to a retailer at a profit of 5% and the retailer sells it to a customer at a profit of 10%. If the customer pays Rs. 4,158 for the jacket, then what was the cost price of the jacket for the wholesaler ?

2025: 21 May Shift 1

X sold an article to Y at a profit of 18%. Later on, Y sold it back to X at a profit of 40%, thereby gaining ₹ 118. How much did X pay for the article originally?

2023: 1 June Shift 1

A wholesaler sells 20 pens at the marked price of 16 pens to a retailer. The retailer sells them at the marked price. Determine the gain percent of the retailer.

2026: 14 May Shift 2

A shopkeeper sells a mobile phone for Rs. 8107 and makes a profit of 21%. Find the cost of the mobile phone.

2026: 31 May Shift 2

The price of a jewel, passing through three sellers, rises on the whole by 65%. If the first and the second sellers earned 20% and 25% profit respectively. The percentage profit earned by third seller is?

2023: 15 June Shift 2

A trader sold half of his articles at 60% profit, half of the remaining at 20% loss and the rest was sold at the cost price. In total transaction his gain % or loss % will be:

The owner of a garment shop labelled his articles at 25% above the cost-price. Due to a slump in the market, his cost price was reduced by 5% but he keeps the marked price same. He thus offers a discount of 8%, due to which the sales increase by 25%. Calculate the change in owner's profit?

Solution

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