Question

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?​

1. Her profit % was increased by 2.77%
Solution Given:
discount =10%
profit =25%
S.P with 13% vat = Rs 5,085
S.P+Vat% of S.P= Rs 5,085
S.P(1+13%)=Rs 5,085
S.P=Rs 5,085/1.13
S.P =Rs 4,500
Again
M.P = S.P+discount% of M.P
M.P- discount% of M.P= Rs 4,500
M.P(1-10%)=Rs 4,500
M.P=Rs 4,500/0.9
M.P = Rs 5,000
Now
C.P= (S.P*100)/(1+profit%)
C.P=(4,500*100)/(100+25%)
C.P= Rs 3,600
Again
profit =S.P- C.P= Rs 4,500-Rs 3,600=Rs 900
Again
Due 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 4,600
Again
Profit=S.P- C.P
New profit =Rs 4,600 – Rs 3,600=Rs 1,000
Profit% =profit/C.P*100%= 1000/3600*100=27.77%
Profit % increased =New profit%- profit%
=27.77-25
=2.77%