The worked question on this page is original educational practice. It is not represented as a question from an official previous-year examination paper.
01 / UNDERSTANDING
Review the question
Use original questions that supply all three prices or ask for a missing one. Include a discounted sale that still makes a profit to challenge an overly simple association.
02 / UNDERSTANDING
The concept in context
A transaction may include transport or other stated purchase costs, which belong in the relevant cost base under the question’s assumptions. Read those assumptions carefully instead of importing a real-world fee rule. A final selling price below marked price can still exceed cost, so a discount does not necessarily imply a loss.
03 / UNDERSTANDING
A worked learning case
Original educational case. A shop buys an item for ₹800, marks it at ₹1,000 and gives a 10% discount. Selling price is ₹900. The ₹100 profit is 12.5% of cost, while the discount is 10% of marked price. Subtracting 10 from the 25% markup would incorrectly predict a 15% profit instead of 12.5%.
ORIGINAL EDUCATIONAL PRACTICE
Try it before you check.
Original practice: An item costs ₹500 and sells for ₹600. What is the profit percentage on cost?
Show the answer and reasoning
20%.
Profit is selling price minus cost: ₹600 − ₹500 = ₹100. Divide that profit by the cost of ₹500, then multiply by 100, giving 20%. Dividing by selling price would produce a different margin measure, so the words on cost fix the denominator required here.
Two traps to watch for.
- Subtracting discount directly from markup percentages.
- Using marked price as the profit denominator.
YOUR TOPIC-SPECIFIC LEARNING MAP
Learn from the attempt
Label cost, marked and selling prices.
Apply changes to their own bases.
Recompute profit from final selling price.
Explain the idea, apply it to a new situation, then check what changed in your reasoning.
BANKERS TUTORIAL · SOURCE NOTES
Keep the source alongside your notes.
Official links provide subject context and authoritative reference material. This guide’s explanation, scenario and question are original Bankers Tutorial learning content.
- sbi.bank.in https://sbi.bank.in/web/careers/current-openings
- sbi.bank.in https://sbi.bank.in/webfiles/uploads/files_2627/09/SBI_JA-Customer_Support_Sales-IH_Pre-2026-27_Eng.pdf
For SBI preparation, check the current official notice before relying on changing dates, rules or examination requirements.
