CAT 2017 Slot 1 — QA Question 6
DiscountEasy
If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?
Answer & solution
- A
Give a discount of 5% on retail price
- B
Give a discount of 2% on retail price
- C
Increase the retail price by 2%
Sell at retail price
Solution
Let the retail price (MRP) be 100.
Discount = 15
Selling price = 85
Cost price = 85/1.02 = 500/6
In order to make a profit of 20%, the selling price = 500/6 × 1.2 = 100
The seller must sell at the retail price.
Hence, option (d).