Question

How much per cent above the cost price should a shopkeeper mark his goods so that even after allowing a discount of $25\%$ on the marked price, he gains $20\%?$

• A. $30\%$
• B. $40\%$
• C. $50\%$
• D. $60\%$

Answer 1

The correct option is D $60\%$

Let the cost price be Rs $100$.
Gain required $=20\%$.
Therefore, selling price $=Rs.120$.
Let the marked price be Rs.$x$.
Discount $=25\%$ of Rs x $=Rs\left(\begin{array}{c}x\times \frac{25}{100}\end{array}\right)=Rs.\frac{x}{4}$
Selling price $=\left(Markedprice\right)-\left(discount\right)=Rs.\left\{\begin{array}{c}x-\left(\begin{array}{c}\frac{x}{4}\end{array}\right)\end{array}\right\}=Rs.\frac{3x}{4}$
$⟹\frac{3x}{4}=120$
$⟹x=\left\{\begin{array}{c}120\times \left(\begin{array}{c}\frac{4}{3}\end{array}\right)\end{array}\right\}=160$.
So, marked price $=Rs.160$.
Hence, the marked price is $60\%$ above cost price.