Gopi marks a price on a product in order to make 20% profit. Ravi gets 10% discount on that marked price, and thus saves Rs 15. Then, the profit, in rupees, made by Gopi by selling the product to Ravi, is

✅ Correct Option: 1

When Ravi gets a 10% discount, he saves Rs 15. This means:

10% of the marked price = Rs 15

To find the marked price, we use the basic percentage formula:

$\text{Marked Price} = \tfrac{\text{Amount Saved}}{\text{Discount Percentage}} \times 100$

$\text{Marked Price} = \tfrac{15}{10} \times 100 = 150$

If 10% equals Rs 15, then 100% (the full marked price) equals Rs 150.

$\text{Selling Price} = \text{Marked Price} - \text{Discount}$

$\text{Selling Price} = 150 - 15 = 135$

So Ravi pays Rs 135 to Gopi.

Gopi marked the price to make 20% profit on his cost price.

When someone marks up by 20%, the marked price becomes 120% of the cost price:

$\text{Marked Price} = \text{Cost Price} + 20\% \text{ of Cost Price}$

$\text{Marked Price} = \text{Cost Price} \times (1 + 0.20) = \text{Cost Price} \times 1.20$

Since marked price = Rs 150:

$150 = \text{Cost Price} \times 1.20$

$\text{Cost Price} = \tfrac{150}{1.20} = 125$

$\text{Profit} = \text{Selling Price} - \text{Cost Price}$

$\text{Profit} = 135 - 125 = 10$

Even though Gopi intended to make 20% profit (Rs 25), he actually made only Rs 10 profit because he had to give Ravi a discount.

Therefore, Gopi's profit is Rs 10.

This enhanced version addresses potential confusion about percentage calculations and clearly explains the relationship between cost price, marked price, and selling price - concepts that often trip up students in profit/loss problems.

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Gopi marks a price on a product in order to make 20% profit. Ravi gets 10% discount on that marked price, and thus saves Rs 15. Then, the profit, in rupees, made by Gopi by selling the product to Ravi, is

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