Let cost price of each article = Rs. 100 and number of articles sold be x ⇒ Original selling price price = Rs. 125 ⇒ Original profit = Rs. (125−100)x=Rs.25x After offering discount of 8%, => New selling price =
92
100
×125=Rs.115 Also, new cost price =
95
100
×100=Rs.95 ∵ Sale increases by 25%,=> Number of articles now sold =1.25x ⇒ New profit = Rs. (115−95)×1.25x=Rs.25x ∴ There is no change in profit.