Question

A dealer offers a cash discount of 20% and still makes a profit of 20%, when he further allows 16 articles to a dozen to a particularly sticky bargainer. How much per cent above the cost price were his wares listed?

• A. $100\%$
• B. $80\%$
• C. $75\%$
• D. $66\frac{2}{3\%}$

Answer 1

The correct option is A $100\%$

If listed price of article be Rs.100 then discounted price be Rs.80 (since discount = 20%)
After offering 16 articles to a dozen
Price of 16 articles $=80\times 12$
Price of one article $=\frac{80\times 12}{16}=60$
Profit = 20%
Cost price x (say)
$=60-x\times \frac{20}{100}$
$\Rightarrow x+\frac{x}{5}=60\Rightarrow x=60\times \frac{5}{6}x=50$
Percent above the cost price
$=\frac{100-50}{50}\times 100=100\%$