If a seller gives a discount of 15% on retail price, she still makes a profit of 2%
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%?
- Give a discount of 5% on retail price
- Give a discount of 2% on retail price
- Increase the retail price by 2%
- Sell at retail price
Answer
Let the retail price be 100.
Discount = 15
Selling price = 85
Cost price = 85/1.02 = 500/6
In order to make a profit of 20%, the selling price = 500/6 × 1.2 = 100
The seller must sell at the retail price.
The correct option is D.