Mrs. Gurung allowed 10% discount on her fancy items to make 25% profit and sold a lady bag for Rs 5,085 with 13% VAT. Due to the excessive demands of her items, she decreased the discount percent by 2%. By how much was her profit percent increased?
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Her profit % was increased by 2.77%Answer:Solution Given:discount =10%profit =25%S.P with 13% vat = Rs 5,085S.P+Vat% of S.P= Rs 5,085S.P(1+13%)=Rs 5,085S.P=Rs 5,085/1.13S.P =Rs 4,500AgainM.P = S.P+discount% of M.PM.P- discount% of M.P= Rs 4,500M.P(1-10%)=Rs 4,500M.P=Rs 4,500/0.9M.P = Rs 5,000NowC.P= (S.P*100)/(1+profit%)C.P=(4,500*100)/(100+25%)C.P= Rs 3,600Againprofit =S.P- C.P= Rs 4,500-Rs 3,600=Rs 900AgainDue to the excessive demands of her items, she decreased the discount percent by 2%.So,New discount = 10%-2%=8%New S.P= M.P -discount% of M.P=M.P(1-discount%)=Rs 5,000(1-8%)=Rs 4,600AgainProfit=S.P- C.PNew profit =Rs 4,600 – Rs 3,600=Rs 1,000Profit% =profit/C.P*100%= 1000/3600*100=27.77%Profit % increased =New profit%- profit%=27.77-25=2.77%