Multiple choice

Directions: The item contains a question and two statements I and II, giving certain data. Select the correct answer from the given alternatives depending on the sufficiency of data given in the statements to answer the question. A salesman sells shirts and by selling these shirts he gains 25%. By what percent is marked price more than the cost price? Statement I: He gives a discount of 4% on the marked price. Statement II: The cost price is 20% less than the selling price.

  1. I alone is sufficient and II alone is not sufficient to answer the question.

  2. II alone is sufficient and I alone is not sufficient to answer the question.

  3. Both I and II together are sufficient, but neither statement alone is sufficient to answer the question.

  4. Both I and II together are not sufficient to answer the question and additional data specific to the question is needed.

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100, SP = 125. MP = x. Statement I: 0.96x = 125, so x is known. Statement II: CP = 0.8 * SP, which is 100 = 0.8 * 125, which is always true and provides no info on MP. Statement I is sufficient.

AI explanation

The core formula linking cost price, marked price, selling price, and discount allows us to find the markup percentage if we know both the profit and discount. Statement I provides the missing discount value of 4%, which allows you to calculate the marked price directly from the selling price. Statement II simply restates the 25% profit given in the prompt, as cost being 20% less than the sale price is the mathematical equivalent of a 25% gain. Therefore, only statement I provides the necessary new information to solve the problem.

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