CAT 2017 Question Paper | Quants Slot 1

CAT Questions

The best place to practice for CAT Exam is CAT previous year paper. This question is from CAT profit and loss. 2IIM CAT Question Bank provides you with CAT question that can help you to gear for CAT 2021 Exam. After giving a discount how can the seller make a profit? It is time to have a go at this question.

Question 6 : If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20% ?

1. Give a discount of 5% on retail price
2. Give a discount of 2% on retail price
3. Increase the retail price by 2%
4. Sell at retail price

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Video Explanation

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Explanatory Answer

Method of solving this CAT Question from Profit and Loss

Given that if a seller gives a discount of 15% on retail price, she still makes a profit of 2%.
Let us assume marked price to be x. So, selling price to be 0.85x on giving 15% discount on retail price she still makes a profit of 2%.

We have to find which of the following options ensures that she makes a profit of 20% so the discount should be much lower.

⟹ \\frac{0.85}{1.02}) × 1.20 = 1
Hence by selling at retail price she makes a profit of 20%.

The question is "If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20% ?"

Hence, the answer is Sell at retail price

Choice D is the correct answer.