When a discount of 10% is given on goods being sold at a profit of 20% the number of units sold double . The ratio of the previous profit to the present profit is ??
Let the cist price be 100.
When a profit of 20% is taken , the selling price is 120.
Let n be the total goods sold. therefore total profit = 20n
When a discount of 10% is given , Selling price = 108.
total goods sold =2n
therefore total profit =2n*8 =16n
The ratio = 20:16=5:4.