Question

By how much above the cost should the goods be marked for sale so that after allowing a trade discount of $20$% and a cash discount of $6\frac{1}{4}$%, a net gain of $20$% on the cost is made?

• A. $60$%
• B. $46\frac{1}{4}$%
• C. $40$%
• D. $26\frac{1}{4}$%

Answer 1

The correct option is A $60$%

Let the cost price be Rs.$100$
Selling price is Rs.$120$
Marked price
$=120\times \frac{100}{93.75}\times \frac{100}{80}$
$=$ Rs.$160$
i.e., $60$% above the cost price.