Discussion
For a certain article, if discount is 25% the profit is 25%. If the discount is 10%, then the profit is?
Answer: A
The profit is 50%.
Take the cost price as 100. With a 25% discount the profit is 25%, so the selling price is 125, which is 75% of the marked price:
\[ \begin{aligned} 0.75\,MP &= 125 \Rightarrow MP = 166.67 \\ 0.90\,MP &= 150 \end{aligned} \]
Selling at 150 what cost 100 is a profit of 50%. 40% is the trap: adding the 15-point reduction in discount directly to the profit ignores that the discount is a percentage of the marked price, not of the cost.
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