Question

A firm, dealing in furniture, allows 4% discount on the marked price of each item.What price must be marked on a dining table which costs Rs. 400 to assemble, so as to make a profit of 20% ?

Answer 1

Given, $C.P.=Rs400$
For Profit % $=\frac{SP-CP}{CP}\times 100=20$ %
$=>\frac{SP-400}{400}\times 100=20$
$=>SP-400=80$
$=>SP=Rs480$
As the table is sold at $4$ % discount on Marked Price,
$(100-4)=96$ % of the Marked Price $=SP$
$\frac{96}{100}\times MP=480$
$=>MP=Rs500$