A manufacturer marked a product 30% above its cost price. He provided a discount to a customer, which resulted in him making a profit of 17%. What was the rate of discount given by the manufacturer?
- (a)24%
- (b)50%
- (c)60%
- (d)10%
Answer
Why
Correct — D. Take the cost price as ₹100 and express both prices on it.
Cost price: ₹100
Marked price, 30% above: 100 + 30 = ₹130
Selling price, 17% profit: 100 + 17 = ₹117
Discount in rupees: 130 − 117 = ₹13
Discount rate on marked price: 13 ÷ 130 × 100 = 10% → option (d)
Why the others are wrong
- (a)24% — 24% off ₹130 leaves 130 × 0.76 = ₹98.80, below the ₹100 cost. That is a loss, not the 17% profit the question states.
- (b)50% — 50% off ₹130 leaves ₹65, a 35% loss on cost. A discount that large cannot leave a 17% profit on a 30% markup.
- (c)60% — 60% off ₹130 leaves ₹52, a 48% loss. Any discount above 30⁄130 ≈ 23.1% already pushes the price below the ₹100 cost.
Concept
Markup is a percentage of cost price; discount is a percentage of marked price. The two rest on different bases, so 30% − 17% = 13% is not the discount rate.
Taking cost as ₹100 turns every percentage into rupees on one scale. The discount is then the ₹13 gap between marked and selling price, divided by the marked price of ₹130.
Formula check. With markup m% and discount d%, the selling price is CP × (1 + m⁄100) × (1 − d⁄100). Here 1.30 × (1 − d⁄100) = 1.17, so 1 − d⁄100 = 0.9 and d = 10%.
Key facts
- Marked price = CP × (1 + markup%⁄100).
- Discount % = (MP − SP) ÷ MP × 100, so its base is the marked price.
- Profit % = (SP − CP) ÷ CP × 100, so its base is the cost price.
Study next
Common traps
- Answering 13% by subtracting 17% from 30% — the ₹13 gap is a share of ₹130, not of ₹100.
- Dividing the discount by the cost price instead of the marked price.
12 Sep 2025, 16:00, Quant Q.16 runs the same chain forward: marked 25% above cost with a 10% discount, the item sells at 125 × 0.9 = 112.5, a 12.5% profit.
26 Sep 2025, 12:30, Quant Q.8 adds a rupee figure: a 40% markup and a 25% discount give SP = 1.4 × 0.75 = 1.05 × CP, so a Rs. 75 gain means CP = Rs. 1,500.
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