Raman fixes the sale price of his goods at 16% above the cost price. He sells his goods at 12% less than the fixed price. Find th…

Question

Raman fixes the sale price of his goods at 16% above the cost price. He sells his goods at 12% less than the fixed price. Find the profit percentage correct to two decimal places.

1. A. 0.08%
2. B. 2.08% (Correct answer)
3. C. 1.07%
4. D. 3.01%

Correct Answer

Option B — 2.08%

Detailed Solution & Explanation

The correct answer is 2.08%.

Key Points

• Take CP $=₹100$. Fixed price $=100\times1.16=₹116$.
• Selling price $=116\times0.88=₹102.08$, so profit $=2.08$ on 100.
• Profit percentage $=2.08\%$.

Additional Information

• Percentage-on-percentage questions are quickest with CP = 100, since every later figure then reads directly as a percentage.
• Successive changes multiply: a 16% rise then a 12% fall gives 1.16 × 0.88 = 1.0208, a net gain of 2.08%.
• Note that a rise and fall of similar size never cancel — the net effect of +x% then −x% is always a small loss of x²/100 per cent.