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Question

A shopkeeper marks his goods in such a way that after allowing a discount of 25% on the marked price, he still makes a profit of 50%. Find the ratio of the C.P. to the M.P.

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Solution

Let C.P be Rs x and M.P be Rs y.Gain% = 50We know that,S.P = 100+Gain%100 × C.P= 150100 × x= 32xDiscount% = 25Discount = 25% of y = Rs 0.25ySo, S.P = M.P - Discount = y - 0.25y = 0.75ySo, S.P = 0.75yAlso, S.P = 32xComparing both values for S.P., we get: 32x = 0.75yxy = 0.75 × 23 =1.53 =12Thus, C.P:M.P = 1:2

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