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By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?
- a)5% profit
- b)1% loss
- c)10% profit
- d)5.5% profit
- e)4.5% profit
Correct answer is option 'E'. Can you explain this answer?
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Most Upvoted Answer
By selling an article at 80% of its marked price, a merchant makes a l...
Approach: Assume cost price to be $100
Let the marked price be S and the cost price of the article be $100.
Let the marked price be S and the cost price of the article be $100.
When the article is sold at 80% of its marked price, selling price is 0.8S.
Selling the article at 0.8S results in a loss of 12% of the cost price.
Therefore, the loss incurred when selling at 0.8S = 12% of 100 = $12.
Hence, when selling at 80% of the marked price, the article is sold at 100 − 12 = $88.
i.e., 0.8S = $88.
or S = 88/0.8 = $110.
If the merchant sells at 95% of the marked price, then the new selling price of the article is 95% of $110 = $104.5
Selling the article at 0.8S results in a loss of 12% of the cost price.
Therefore, the loss incurred when selling at 0.8S = 12% of 100 = $12.
Hence, when selling at 80% of the marked price, the article is sold at 100 − 12 = $88.
i.e., 0.8S = $88.
or S = 88/0.8 = $110.
If the merchant sells at 95% of the marked price, then the new selling price of the article is 95% of $110 = $104.5
The profit made = 95% of Selling Price − Cost Price = 104.5 − 100 = $4.5.
% Profit = profit/cost price = 4.5/100 = 4.5%
The merchant made 4.5% profit
% Profit = profit/cost price = 4.5/100 = 4.5%
The merchant made 4.5% profit
Choice E is the correct answer.
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Community Answer
By selling an article at 80% of its marked price, a merchant makes a l...
Given Information:
- Selling price of the article = 80% of the marked price
- Loss incurred = 12%
Calculating the Cost Price:
Let the marked price be M.
Selling price = 0.8M
Loss = 12% of M = 0.12M
Cost price = Selling price + Loss = 0.8M + 0.12M = 0.92M
Calculating the Profit at 95% of the Marked Price:
New Selling Price = 0.95M
Profit = Selling Price - Cost Price = 0.95M - 0.92M = 0.03M
Profit Percentage = (Profit/Cost Price) x 100
Profit Percentage = (0.03M/0.92M) x 100 ≈ 3.26%
Therefore, the merchant will make approximately a 4.5% profit if the article is sold at 95% of its marked price. Hence, option E is the correct answer.
- Selling price of the article = 80% of the marked price
- Loss incurred = 12%
Calculating the Cost Price:
Let the marked price be M.
Selling price = 0.8M
Loss = 12% of M = 0.12M
Cost price = Selling price + Loss = 0.8M + 0.12M = 0.92M
Calculating the Profit at 95% of the Marked Price:
New Selling Price = 0.95M
Profit = Selling Price - Cost Price = 0.95M - 0.92M = 0.03M
Profit Percentage = (Profit/Cost Price) x 100
Profit Percentage = (0.03M/0.92M) x 100 ≈ 3.26%
Therefore, the merchant will make approximately a 4.5% profit if the article is sold at 95% of its marked price. Hence, option E is the correct answer.
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By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer?
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By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer?.
By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By selling an article at 80% of its marked price, a merchant makes a loss of 12%. What % profit will the merchant make if the article is sold at 95% of its marked price?a)5% profitb)1% lossc)10% profitd)5.5% profite)4.5% profitCorrect answer is option 'E'. Can you explain this answer?.
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