An article is sold at a 25% discount, resulting in a 20% profit. If the discount is reduced to 15%, what will be the new profit percentage?

Question: An article is sold at a 25% discount, resulting in a 20% profit. If the discount is reduced to 15%, what will be the new profit percentage?

Solution:
Let the cost price (CP) be Tk. 100

With 20% profit:
Selling Price (SP) = CP + 20% profit
= 100 + 20
= Tk. 120

This SP is after 25% discount on Marked Price (MP).
∴ SP = 75% of MP
⇒ 120 = 0.75 × MP
⇒ MP = 120 / 0.75
= Tk. 160

Now, with reduced discount of 15%:
New Selling Price = 85% of Marked Price
= 0.85 × 160
= Tk. 136

∴ New profit = New Selling Price – Cost Price
= 136 – 100
= Tk. 36

∴ New profit percentage = (36 / 100) × 100% = 36%