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When a producer allows 36% commission on retail price of his product, he earns a profit of 8.8%. what would be his profit % if the commision is reduced by 24%? |
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Answer» Let the retail price =Rs 100 then, commission=Rs 36 S.P=Rs(100-36)=Rs 64 But, profit=8.8% C.P=Rs(100/108.8*64)=Rs 1000/17 New commission =Rs.12. New S.P=Rs(100-12)Rs 88 Gain=Rs(88-1000/17)=Rs 496/17 Gain%=(496/17*17/1000*100)%=49.6% |
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