Question

A tradesman gives 4% discount on his marked price and gives 1 article free for buying every 15 articles and thus gains 35%. By what per cent is the marked price increased above the cost price ?

• A. 50%
• B. 40%
• C. 60%
• D. 80%

Answer 1

Answer: (A)

50%

Let the C.P. of each article be Rs.x

Then C.P. of 16 articles = Rs.16x

S.P. of 15 articles = 135% of Rs.16x = Rs. $\left(\frac{135\times 16x}{100}\right)=Rs.\frac{108x}{5}$

S.P. of 1 article $=Rs.(\frac{108x}{5}\times \frac{1}{15})=Rs.\frac{36x}{25}$

Let M.P. = Rs.100 Then S.P. =Rs.96 after a discount of 4%

$\therefore$ If S.P. =Rs.96 then M.P. = Rs.100

If S.P. =Rs.$\frac{36x}{25}$ then M.P. $=Rs.(\frac{100}{96}\times \frac{36x}{25})=Rs.\frac{3x}{2}$

$\therefore$ % increase in M.P. over C.P. $=\frac{\frac{3x}{2}-x}{x}\times 100=(\frac{x}{2}\times \frac{1}{x}\times 100)\%=50\%$