MBApyq

Profit Percentage with Discounts and Markups

XAT 2015 · Quantitative Ability & Data Interpretation · Medium · Quantitative Ability

All XAT 2015 questionsMore Quantitative Ability questionsAll XAT QADI

The Maximum Retail Price (MRP) of a product is 55%55\% above its manufacturing cost. The product is sold through a retailer, who earns 23%23\% profit on his purchase price. What is the profit percentage (expressed in nearest integer) for the manufacturer who sells his product to the retailer? The retailer gives 10%10\% discount on MRP.

  1. A.

    31%

  2. B.

    22%

  3. C.

    15%

  4. D.

    13%

  5. E.

    11%

Answer

D

Explanation

Let Manufacturing Cost =100= 100. MRP =155= 155. Retailer selling price =155×0.9=139.5= 155 \times 0.9 = 139.5. Retailer makes 23%23\% profit, so Retailer Purchase Price X×1.23=139.5  ⟹  X=113.41X \times 1.23 = 139.5 \implies X = 113.41. Manufacturer profit percentage =113.41−100100×100%=13.41%≈13%= \frac{113.41 - 100}{100} \times 100\% = 13.41\% \approx 13\%.

Related Quantitative Ability questions

Practise this under exam conditions

Sign in to solve it with a live timer, the on-screen CAT calculator, and streak and accuracy tracking across every question you attempt.

Solve in the workspace