articals are marked at a price which gives a profit of 25%.after allowing a certain discount, the profit reduces to 12 1/2%. find the discount percent.

Question

discount%, profit, loss

Answer 1

Himanshu,

 

Lets say that the markup price  is $125 and that the cost is $100. That would be 25% profit on $100.

The new discount reduces the profit to 12½%. That means the new price is $112.5, which also means, that the new profit is 12½%.

original price = $125

discounted price = $112.5

 

Discount in percentage = [(125-112.5)/125]*100= 10%