Question

A retailer allows a trade discount of $20\%$ and a cash discount of $6\frac{1}{4}\%$ on the market price of the products and gets a net profit of $20\%$ on the cost. By how much above the cost, should the products be labelled for sale?

• A. $40\%$
• B. $60\%$
• C. $45\%$
• D. $70\%$

Answer 1

The correct option is B $60\%$

Let C.P. $=100$ rupees
Then, S.P. $=120$ rupees

Let M.P. be $x$ rupees.
Then, $93\frac{3}{4}\%$ of $80\%$ of $x=120$
$\Rightarrow \frac{375}{4}\times \frac{1}{100}\times \frac{80}{100}\times x=120$
$\Rightarrow \frac{3}{4}x=120$
$\Rightarrow x=\frac{120\times 4}{3}=160$
$\therefore$ Market price $=60\%$ above C.P.