Question

If a commission of 10% is given on the marked price of a book, the publisher gains 20%. If the commission is increased to 15%, the gain of publisher is :

A. 16 2/3%
B. 13 1/3%
C. 15 5/6%
D. 12 1/2%

Answer 1

The publisher's gain when the commission is increased to 15% is calculated by understanding the relationship between marked price, commissions, and profit. Initially, the publisher gains 20%, and with a 10% commission, this gain equals 8 units over the cost. When the commission is 15%, the gain reduces by 2 units, leading to a new gain of 18%.

Step-by-step explanation:

When a commission of 10% is given on the marked price of a book, and the publisher gains 20%, we can denote the cost price as 100 units (for simplicity). The marked price with 20% gain is 120 units. When the commission is 10%, the selling price would be 90% of the marked price, which is 108 units (90% of 120). With this, the publisher gains 8 units over the cost price.

If the commission is increased to 15%, the selling price becomes 85% of the marked price, so it will be 102 units (85% of 120). The gain for the publisher is now 2 units over the cost price. To find the percentage gain, we divide the gain by the cost price and multiply by 100, so the gain percentage is (2/100)*100 = 2%. This means the new total percentage gain for the publisher is the initial 20% gain minus the 2% lost due to the increased commission, giving an answer of 18%.