A producer allows a commission of 36% on the retail price of his product and earns a profit of 8.8%.…
Take the retail price as 100, so the producer receives 64 after a 36 percent commission, and since this gives 8.8 percent profit the cost is \(\frac{64}{1.088} = 58.82\).…
Choose your answer
A producer allows a commission of 36% on the retail price of his product and earns a profit of 8.8%. What would be the profit of the producer (in percentage), if the commission is reduced by 24 percentage points?
Answer and explanation
Correct answer C
Take the retail price as 100, so the producer receives 64 after a 36 percent commission, and since this gives 8.8 percent profit the cost is . With the commission cut to 12 percent the producer receives 88, so the profit is percent.
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