Question:medium

A shopkeeper buys an item for 2000 and marks it up by 50% to set the marked price. He then offers a 20% discount on the marked price. What is the profit earned by the shopkeeper?

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Remember: To calculate profit, find the selling price after applying the discount on the marked price, then subtract the cost price. Double-check percentage calculations.
Updated On: Jan 16, 2026
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Solution and Explanation

To determine the shopkeeper's profit, we must first calculate the selling price after applying a markup and then a discount.

1. Determine the Marked Price:
The item's cost price (CP) is ₹2000. A 50% markup is applied.
Marked Price (MP) = Cost Price + (Markup Percentage × Cost Price)
$ = 2000 + \frac{50}{100} \times 2000 = 2000 + 1000 = ₹3000 $

2. Apply the Discount:
A 20% discount is offered on the marked price.
Selling Price (SP) = Marked Price - (Discount Percentage × Marked Price)
$ = 3000 - \frac{20}{100} \times 3000 = 3000 - 600 = ₹2400 $

3. Calculate the Profit:
Profit = Selling Price - Cost Price
$ = 2400 - 2000 = ₹400 $

Final Result:
The shopkeeper's profit is ₹400.

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