Profit and Loss Practice Test 5

Question : 29 of 40

Marks: +1, -0

When a producer allows 36% commission on the retail price of his product, he earns a profit of 8.8%.What would be his profit per cent, if the commission is reduced by 24%?

40%
45.6%
49.6%
50%

Validate

Solution:

Let retail price be Rs. x; then S.P. =

64/100 × x

= Rs.

16/25x

Since, CP =

100/108.8×16/25 x

= Rs.

10/17x

;
Again, another S.P. =

88/100 × x

= Rs.

22/25x

Gain =

22/25x-10/17x

= Rs.

124/425x

Hence, gain% =

{124x\/ 425}/{10x\/ 17}×100

= 124/{10× 25}×100

= 248/5 = 49.6%

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