Multiple choice

At what percentage above the cost price must an article be marked so as to gain 33% after allowing the customer a discount of 5%?

  1. 48%

  2. 43%

  3. 40%

  4. 38%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. To gain 33%, SP = 133. With a 5% discount, 0.95 * MP = 133, so MP = 133 / 0.95 = 140. The markup percentage is (140 - 100) / 100 = 40%.

AI explanation

Using the formula for profit and discount, marked price equals cost price multiplied by 100 plus profit percentage divided by 100 minus discount percentage. The marked price equals cost price multiplied by 133 divided by 95, which simplifies to 1.4 times the cost price. The article must be marked 40 percent above the cost price.

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