Q21 (CISF/2026) Economy › Basic Concepts & National Income

1. A shopkeeper lists the selling price of an item at 20% more than its cost price. He then offers a festival discount of 10% on that item. What is his net profit ?

Result

Your answer: — · Correct: C

Explanation

The net profit can be calculated using a step-by-step approach or the successive percentage formula. Here is the breakdown:

Step 1: Assume the Cost Price (CP) of the item is ₹100.
Step 2: The shopkeeper marks the price 20% above the CP. Therefore, the Marked Price (MP) = 100 + (20% of 100) = ₹120.
Step 3: A festival discount of 10% is offered on the Marked Price. Discount = 10% of ₹120 = ₹12.
Step 4: The Selling Price (SP) = MP - Discount = 120 - 12 = ₹108.
Step 5: Net Profit = SP - CP = 108 - 100 = ₹8. As a percentage of the original CP (100), the profit is 8%.

Alternatively, using the successive percentage formula [x + y + (xy/100)], where x = +20 (markup) and y = -10 (discount): 20 - 10 + [(20)(-10)/100] = 10 - 2 = 8%.

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1. A shopkeeper lists the selling price of an item at 20% more than its cost price. He then offers a festival discount of 10% on that item. What is his net profit ?

Explanation

SIMILAR QUESTIONS

A shopkeeper gives two consecutive discounts of 10% and 5% respectively on his items. He then adds 20% GST on his items. If an item has marked price 2,000, how much more or less of the actual price of the item a customer has to pay?

A shopkeeper sells two items, A and B. Item B's cost price is twice as that of item A. The shopkeeper sells item A at 10% profit and item B at 20% profit. Which one of the following is the value of net profit?

A person buys an item from a shop for which the shopkeeper offers a discount of 10% on the marked price. The person pays using an e-wallet which gives 10% cash back. Which one of the following is the value of effective discount?

A shopkeeper sold a product at 30% loss. Had his selling price been ₹150 more, he would have made a profit of 10%. What was the cost price?

In a stock clearance sale, a shopkeeper gives 40% off on all his items. He incurs a loss of 25% by selling an item of marked price 2,000. Which one of the following is the cost price of this item?