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SHARMA3108
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A merchant sells an item at a 20% discount, but still makes a gross pr 15 Jun 2026, 07:32
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KillerSquirrel
A merchant sells an item at a 20% discount, but still makes a gross profit of 20 percent of the cost. What percent of the cost would the gross profit on the item have been if it had been sold without the discount?

A. 20%
B. 40%
C. 50%
D. 60%
E. 75%
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Let C.P = 100
and M.P = x
since profit is 20%

Profit is always calculated over C.P, so 20% of C.P = 20 % of 100 = 20
So selling price is 100+20=120

now,
It is sold at 20% discount
Discount is always given on M.P

since we have taken M.P as x
So, x-20% of x = x- (1/5)*x
so 4x/5

now,
4x/5= S.P
4x/5= 120
x= 600/4
x= 150

so M.P is 150

Now question asks, without discount
so, Profit = M.P - C. P
Profit = 150-100
Profit = 50

Now,
Profit as % of C.P = (50/100)*100 =50%

Ans. C => 50%

Hope it helps
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