Question

A Tradesman Gives$4\%$Discount On The Marked Price And Gives $1$ Article Free For Buying Every $15$ Articles And Thus Gains $35\%$ . The Marked Price Is Increased Above The Cost Price By?

• A. $20\%$
• B. $39\%$
• C. $40\%$
• D. $50\%$

Answer 1

The correct option is D

$50\%$

Step 1. Let the C.P of each article $=Rs100$.

The cost price of $(15+1)$ article $=100x16=Rs1600$

If Tradesman earns $35\%$ profit

Then the selling price of $15$ articles$=1600+\frac{35}{100}x1600$

$$\begin{gathered} =\frac{135}{100}x1600 \\ =Rs2160 \end{gathered}$$

Then the selling price of each article $=\frac{1600}{15}=Rs144$

Step 2. Let the marked price of each article $=Rs100$

Then the marked price of $15$ articles $=Rs1500$

This price after discount of $4\%$ $=100-4=Rs96$

If the selling price is $Rs96$, then the marked price $=Rs100$

If the selling price is $144$, then the marked price $=\frac{100}{96}x144=Rs150$

Hence, the marked price is $50\%$ above the cost price.