A product is sold at a 20% discount on its marked price. This transaction results in a profit of 10% on its cost price. If the profit earned is ₹300, what would have been the selling price if the product was sold at a 30% discount on its marked price?
- (a)₹2887.50
- (b)₹3000.26
- (c)₹3300
- (d)₹3150
Answer
Why
Correct — A. Get the cost price from the profit, then the marked price, then the new sale.
Profit ₹300 is 10% of CP, so CP = 300 ÷ 0.10 = ₹3000
SP at 20% off: 3000 + 300 = ₹3300
SP = 0.8 × MP, so MP = 3300 ÷ 0.8 = ₹4125
At 30% off: SP = 0.7 × 4125 = ₹2887.50 → option (a)
Why the others are wrong
- (b)₹3000.26 — ₹3000.26 sits next to the ₹3000 cost price. At 30% off the seller goes below cost, 0.7 × 4125 = ₹2887.50, a loss of ₹112.50.
- (c)₹3300 — ₹3300 is the price at the 20% discount, the sale that happened. The question asks what the 30% discount would have given.
- (d)₹3150 — ₹3150 would need a marked price of 3150 ÷ 0.7 = ₹4500. The marked price here is ₹4125, fixed by 3300 ÷ 0.8.
Concept
The profit is given in rupees and as a percentage, and together they fix the cost price: 10% of CP = ₹300, so CP = ₹3000.
The marked price follows, because a 20% discount means SP is 80% of MP.
A new discount is taken on the same marked price: 30% off means 70% of ₹4125. Shortcut: new SP = 3300 × 70⁄80 = ₹2887.50.
At 30% off the product sells for less than its ₹3000 cost, so the profit turns into a loss of ₹112.50. The question asks for the selling price, not the profit.
Key facts
- Profit = CP × profit% ⁄ 100, so ₹300 at 10% means CP = ₹3000.
- SP after a d% discount = MP × (100 − d) ⁄ 100.
- Two discounts on one MP give selling prices in the ratio (100 − d₁) : (100 − d₂), here 80 : 70.
Study next
Common traps
- Taking 30% off the ₹3300 selling price (giving ₹2310) instead of the ₹4125 marked price.
- Stopping at the first selling price, ₹3300, which is printed among the options.
A rupee profit fixing the cost price is also asked 14 Sep 2025, 12:30, Quant Q.16: a 20% markup and a 15% discount leave a 2% profit of ₹300, so the cost is ₹15,000.
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