Multiple choice

In order to gain 40%, after allowing a discount of 40% on marked price, at what percent higher than the cost price should the goods be marked?

  1. 166.66%

  2. 26.54%

  3. 133.33%

  4. 33.23%

  5. 32.54%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Desired SP = 140. Discount = 40% of MP, so SP = 0.6 * MP. 0.6 * MP = 140 implies MP = 140 / 0.6 = 233.33. The markup is 233.33 - 100 = 133.33%.

AI explanation

Let the cost price be Rs. 100, meaning the desired selling price to gain 40% is Rs. 140. The formula for selling price is Marked Price * (1 - Discount/100), so 140 = Marked Price * 0.60, yielding a marked price of 140 / 0.60 = Rs. 233.33. Since the marked price is Rs. 233.33 and the cost price is Rs. 100, the goods must be marked 133.33% higher than the cost price.

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