Question

To increase the profit from 20% to 12%, you would need to decrease the discount. Calculate the new discount as follows:

Find the cost price (CP) after a 20% profit: CP = Marked Price (MP) / (1 + Profit Percentage)
Calculate the new selling price (SP) for a 12% profit: SP = CP * (1 + 12%)
Find the new discount: Discount = MP - SP
The increase in discount will be the difference between the initial discount and the new discount.

Answer 1

To change the profit from 20% to 12%, calculate the cost price with a 20% profit, determine the new selling price with a 12% profit, and subtract the new selling price from the marked price to find the new discount. The change in discount is the difference between the old and new discounts.

Step-by-step explanation:

The student's question involves calculating the new discount needed to change the profit on an item from 20% to 12%. First, to find the cost price (CP) after a 20% profit, the formula CP = Marked Price (MP) / (1 + Profit Percentage) is used. To calculate the new selling price (SP) for a 12% profit, use the formula SP = CP * (1 + 12%). Finally, the new discount is found by subtracting the new SP from the MP, Discount = MP - SP. The change in discount is the difference between the initial discount and the new discount.

Additionally, when dealing with price and quantity, one can use the math trick that involves the formula for Price x Quantity and considers the % change in Price plus the % change in Quantity.