A dealer marks a chair at ₹2000 and sells it at a discount of 10%, paying his salesman a commission of 5% of the selling price. The chair had cost the dealer ₹1425. His profit percent is:

The selling price is $2000\times 0.9$ = ₹1800, the commission is 5% of that, ₹90, so the dealer keeps ₹1710 — a profit of ₹285 on a cost of ₹1425, i.e. 20%. Ignoring the commission gives 375/1425 = 26.3%; working the profit out on the ₹1710 received rather than on the cost gives 16.7%; and treating the marked ₹2000 as the selling price gives 40.4%.