A seller marks his goods 30% above their cost price but allows 15% discount for cash payment. His percentage of profit when sold in cash, is :

PPSC Excise and Taxation Inspector 2018 Question Paper

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48.

A: 10.5%

B: 15%

C: 9%

D: 8.5%

The answer is: A

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Answer: A - 10.5%

Step by step calculation:

Assume Cost Price = Rs. 100

Step 1 - Marked Price (30% above CP): Marked Price = 100 + 30% of 100 = Rs. 130

Step 2 - Selling Price (15% discount on Marked Price): Discount = 15% of 130 = Rs. 19.5 Selling Price = 130 − 19.5 = Rs. 110.5

Step 3 - Profit %: Profit = SP − CP = 110.5 − 100 = Rs. 10.5 Profit % = (10.5/100) × 100 = 10.5%

The core concept:

Markup and discount do not cancel each other linearly
30% up then 15% down ≠ 15% profit
The discount is applied on marked price, not cost price - so the interaction creates a smaller net profit than simple subtraction suggest.