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If on an item a shop gives 25% discount, they earn 25%
profit. If they now give 10% discount then what is the
profit percentage
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Answer Posted / mohan
Let capital be 125(Manufacturing price + profit)
Manufacturing price (MP): 100
With Profit 25% (MP + profit) = 125
Selling price (SP) = 125 + (25 * 125/100) = 125 + 31
(approx) = 156
After discount of 10% on SP profit will be
156 - 156 * 10/100 = 140 (approx)
profit = SP - MP
140 - 100 = 40 ( i.e., 40%)
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