Choose the correct option from followingQuantity I: On a mask SP is 4

1.	Choose the correct option from followingQuantity I: On a mask SP is 425% more than the cost price. If cost price is increased by 5% then calculate new profit margin in percentage if selling price of mask remain the same.Quantity II: A company is offering 80% discount on the marked price because of which selling price is equal to cost price. Calculate percentage mark up.1. Quantity I ≥ Quantity II2. Quantity I ≤ Quantity II3. Quantity I > Quantity II4. Quantity I = Quantity II5. Quantity I< Quantity II
Answer» Correct Answer - Option 4 : Quantity I = Quantity II Given: Profit = 425% C.P. = Increase is 5% S.P. =Constant Discount = 80% on mark up Formula used : Profit = S.P. – C.P. Calculation: Quantity I : Assume the cost price = Rs 100 ⇒ Selling price = 100 + 425 ⇒ Selling price = 525 ⇒ Profit from new C.P. increase = 525 – (100 + (0.05 × 100)) ⇒ Profit from new C.P. increase = 525 – 105 ⇒ Profit from new C.P. increase = 420% ⇒ New profit margin = (420/105) × 100 ⇒ New profit margin % = 400% Quantity II : Let the marked price be Rs 100 Selling price = 100 – (0.80 × 100) ⇒ Selling price = 20 ⇒ S.P. = C.P. = 20 ⇒ Percentage markup = ((100 – 20)/20) × 100 ⇒ Percentage markup = 400% ∴ Quantity I = Quantity II

Choose the correct option from followingQuantity I: On a mask SP is 425% more than the cost price. If cost price is increased by 5% then calculate new profit margin in percentage if selling price of mask remain the same.Quantity II: A company is offering 80% discount on the marked price because of which selling price is equal to cost price. Calculate percentage mark up.1. Quantity I ≥ Quantity II2. Quantity I ≤ Quantity II3. Quantity I > Quantity II4. Quantity I = Quantity II5. Quantity I< Quantity II

Answer» Correct Answer - Option 4 : Quantity I = Quantity II

Given:

Profit = 425%

C.P. = Increase is 5%

S.P. =Constant

Discount = 80% on mark up

Formula used :

Profit = S.P. – C.P.

Calculation:

Quantity I :

Assume the cost price = Rs 100

⇒ Selling price = 100 + 425

⇒ Selling price = 525

⇒ Profit from new C.P. increase = 525 – (100 + (0.05 × 100))

⇒ Profit from new C.P. increase = 525 – 105

⇒ Profit from new C.P. increase = 420%

⇒ New profit margin = (420/105) × 100

⇒ New profit margin % = 400%

Quantity II :

Let the marked price be Rs 100

Selling price = 100 – (0.80 × 100)

⇒ Selling price = 20

⇒ S.P. = C.P. = 20

⇒ Percentage markup = ((100 – 20)/20) × 100

⇒ Percentage markup = 400%

∴ Quantity I = Quantity II