Question

A shopkeeper gives $10\%$ discount on marked price and gives $4$ articles free of cost for buying every $20$ articles and thus gain $25\%$. The marked price is what percentage of the cost price?

• A. $50\%$
• B. $45\%$
• C. $66\frac{2}{3}\%$
• D. $32\%$
• E. $48\%$

Answer 1

The correct option is C $66\frac{2}{3}\%$

Let marked price of each article was Rs. $100$
After giving $10\%$ on MP, SP of each article becomes Rs. $90$
Then,
SP of 24 articles $=20\times 90=$ Rs. $1800$ ...[ 4 articles are given free of cost on buying 20. ]
Now, shopkeeper earns $25\%$ profit on CP means,
$CP+25$
$[CP+\frac{25CP}{100}]=SP$
$\frac{[100CP+25CP]}{100}=1800$
$125CP=180000$
$CP=Rs.1440$
CP of one article $=\frac{1440}{24}=Rs.60$
Now, % MP above CP $=\frac{\frac{40}{60}}{100}=66.66\%=66\left(2/3\right)\%$