The marked price of a chair is Rs. 2,400, which is 20% above the cost price. If the chair is sold at a discount of 10% on marked price, what is the profit percentage?

Correct option is B

Given:

Marked price of the chair: Rs. 2,400
Marked price is 20% above the cost price.
Discount on marked price: 10%

Formula Used:

​$$\text{Profit Percentage} = \left[ \frac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}} \right] \times 100$$​​

Solution:

Let the cost price of the chair be Rs. x.
Since the marked price is 20% above the cost price, we have:
Marked Price = Cost Price + 20% of Cost Price
2,400 = x + 0.20x
2,400 = 1.20x
x = 2,400 / 1.20 = Rs. 2,000
The chair is sold at a 10% discount on the marked price.
Selling Price = Marked Price - 10% of Marked Price
Selling Price = 2,400 - (0.10 $$\times$$​2,400) = 2,400 - 240 = Rs. 2,160
Profit Percentage = $$\left[ \frac{(2,160 - 2,000)}{2,000} \right] \times 100 = \left( \frac{160}{2,000} \right) \times 100 = 8\%$$​​

Thus, the profit percentage is 8%.

Alternative: