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A company gives a 25% discount on the marked price of a product and still makes a 20% profit. What is the profit percentage if the product were sold at the marked price without any discount?*1 pointa) 45%b) 50%c) 55%d) 60%

Question

A company gives a 25% discount on the marked price of a product and still makes a 20% profit. What is the profit percentage if the product were sold at the marked price without any discount?*1 pointa) 45%b) 50%c) 55%d) 60%

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Solution

Let's solve this step by step:

  1. Let's assume the cost price of the product is $100.

  2. The company makes a 20% profit after giving a 25% discount. This means the selling price is 120(because120120 (because 120% of 100 is $120).

  3. The selling price of 120isaftera25120 is after a 25% discount. So, the marked price (before discount) is 160 (because 120is75120 is 75% of the marked price, so 120/0.75 = $160).

  4. If the product were sold at the marked price without any discount, the selling price would be $160.

  5. The profit made when sold at the marked price is 60(because60 (because 160 - 100=100 = 60).

  6. The profit percentage is then (Profit/Cost price) * 100 = (60/60/100)*100 = 60%.

So, the answer is d) 60%.

This problem has been solved

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