Aptitude

Question

When a producer allows 36% commission on the retail price of his product, he earns a profit of 8.8%. What would be his profit percentage if the commission is reduced by 24%?

Comments

Lets us say my intial price =100 and commission =36. Now reduce by 24 % means new commission
36*(1-.24) or does it means it has been 12 % now(36-24)?I think the first one is correct but the solution i am having using the later one.

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Both commission is given in Percentage .So  only reduced 24%  commission from previous Commission i.e 36% given by producer to Vendor.So Now Commission given=12%

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But why my logic is wrong?Consider the following statement

 If i say my expenditure is 75% and my salary is increased by 30% and my expenditure is increased by 10%.Does this mean my new expenditure is 85% now?

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your new expenditure will be 82.5%..

you should not add 75+10=85%, it will be like this..

0.75(1+0.1)=0.825=82.5%

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As @joshi  for this question-

If i say my expenditure is 75% and my salary is increased by 30% and my expenditure is increased by 10%.Does this mean my new expenditure is 85% now?

Answer-your new expenditure will be 82.5%.

In this question your salary is also increased with your expenditure.

But According to your question ,i think question made like that-

If i say my expenditure is 75%  and then again my expenditure is increased by 10%.What is my new expenditure?

let salary be 100.

New expenditure-(75+10)=85% of 100

                             =85.

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what is the final profit %??

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Can you please tell why my approach is wrong?I am also reducing earlier commission by 24%.