To understand this commission concept in any aptitude question has always been a burden to me. May anyway please show me an insight view into this concept.
" By what percentage must the cost price be raised in fixing the sale price in order that there may be a profit of 20% after allowing a commission of 10% ? "
I have understood only one thing from this. If the Marked Price ( MP ) is x. Then,
The business takes place on 90% of x.
What should i think next in such kind of questions. Please help.
Let's assume P is production price and S is sale price.
0.9*S=1.2*P
Therefore, S=1.3333*P It means you should sell it with %33.3333 raise in price to get %20 profit after %10 commission.