A shopkeeper marked 50% more price than cost price of the article. If he allows 30% discount to his customers, then his profit per cent is

Options

A. 0.05
B. 0.1
C. 0.12
D. 0.15

Answer

To solve the problem step by step, we will follow the given information and perform the necessary calculations.

### Step 1: Define the Cost Price (CP)
Let's assume the cost price (CP) of the article is Rs. 100.

**Hint:** Start by assuming a simple value for CP to make calculations easier.

### Step 2: Calculate the Marked Price (MP)
The shopkeeper marks the price 50% more than the cost price.
- Marked Price (MP) = CP + 50% of CP
- MP = 100 + (50/100) * 100
- MP = 100 + 50 = Rs. 150

**Hint:** Remember that "50% more" means you add half of the CP to the CP itself.

### Step 3: Calculate the Selling Price (SP) after Discount
The shopkeeper gives a 30% discount on the marked price.
- Discount = 30% of MP = (30/100) * 150 = Rs. 45
- Selling Price (SP) = MP - Discount
- SP = 150 - 45 = Rs. 105

**Hint:** Discounts are always calculated on the marked price, so subtract the discount from the marked price to find the selling price.

### Step 4: Calculate the Profit
Profit is calculated as the difference between the Selling Price and the Cost Price.
- Profit = SP - CP
- Profit = 105 - 100 = Rs. 5

**Hint:** Profit is simply what you earn above what you spent (CP).

### Step 5: Calculate the Profit Percentage
Profit percentage is calculated using the formula:
- Profit Percentage = (Profit / CP) * 100
- Profit Percentage = (5 / 100) * 100 = 5%

**Hint:** To find the profit percentage, divide the profit by the cost price and multiply by 100 to convert it to a percentage.

### Final Answer
The profit percentage is **5%**.

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