Question

How much percent above the cost price should a shopkeeper mark his goods so that after allowing a discount of $10$% on the marked price, he still gains $8$%.

Answer 1

Let the Cost Price (CP) of the goods be $Rs.100$.

$\therefore$ Selling Price of the goods = CP + Profit

$=100+8\%\text{of}100$

$=100+8$

$=Rs.108$ units

Therefore, SP of the goods should be $Rs.108$ ....(i)

Let Marked Price (MP) of the goods be $Rs.x$

$\therefore$ SP of the good = MP $-$ Discount

$=x-10\%\text{of}x$

$=x-0.1x$

$=Rs.0.9x$

Therefore, SP of the goods should be $Rs.0.9x$....(ii)

From (i) and (ii),

$\Rightarrow 0.9x=108$

$\Rightarrow x=\frac{108}{0.9}=120$

Therefore, MP of the good is $Rs.120$.

Hence, Amount masked above CP = $120-100=Rs.20$

Percentage of masked price above CP =$\frac{20}{100}\times 100=20\%$