A merchant changed his trade discount from 25% to 15%. This would increase selling price by 

A merchant changed his trade discount from 25% to 15%. This would increase selling price by

A. 3(1/3)%

B. 6(1/6)%

C. 13(1/3)%

D. 16(1/3)%

Answer :

The percentage increase in selling price is approximately 13(1/3)%.

Let's assume the cost price of the item is $100.

Initially, with a 25% trade discount, the selling price would be 75% of the cost price: Selling price 1 = (75/100) * 100 = $75

Now, with a 15% trade discount, the selling price would be 85% of the cost price: Selling price 2 = (85/100) * 100 = $85

Now, let's find the difference in selling prices: Increase in selling price = Selling price 2 - Selling price 1 = $85 - $75 = $10

To find the percentage increase, we use the formula: Percentage increase = (Increase / Original selling price) * 100

Percentage increase = (10 / 75) * 100 = 40/3

So, the percentage increase in selling price is approximately 13(1/3)%. Therefore, the correct answer is option C.

What is Profit Percentage?

Profit percentage is a financial metric used to measure the profitability of a business or investment relative to the revenue generated. It is typically expressed as a percentage and represents the portion of revenue that constitutes profit after all expenses and costs have been deducted.

The formula to calculate profit percentage is:

Profit Percentage = (Profit / Revenue)×100

Where:

• Profit is the amount of money earned after subtracting all expenses (including taxes, operating costs, and other overheads) from the revenue.
• Revenue is the total income generated from sales or other business activities.

Profit percentage provides insight into how efficiently a business is being managed and how effectively it is generating profit from its operations. It is a critical measure for assessing the financial health and performance of a company and is often used by investors, analysts, and management for decision-making purposes.