Question

By selling goods for $540, a trader makes a profit of 8%. She reduces her prices to $515. What is her percentage profit now?​

Answer 1

Her percentage profit is 3%

Explanation:

In the case of 8% profit,

If the purchasing price is $100, the selling price is = $100 + $8 = $108

Now,

If the selling price is $108, the purchasing price is $100

If the selling price is $1, the purchasing price is $100/$108

If the selling price is $540, the purchasing price is ($100*$540)/$108 = $500

Again,

If she reduces the selling price to $515, the profit will be ($515-$500) =$15

Now,

If the purchasing price is $500, the profit is = $15

If the purchasing price is $1, the profit is = $15/$500

If the purchasing price is $100, the profit is = ($15*$100)/$500 = 3%