Multiple choice

A shopkeeper allows a discount of 15% on the marked price . How much (approximate) above the cost price must he mark his goods to make a profit of 25%?

  1. 47%

  2. 58%

  3. 68%

  4. 72%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Desired SP = 125 (25% profit). After 15% discount, SP = 0.85 × MP = 125, so MP = 125/0.85 = 147.06. Markup above CP = (147.06 - 100)/100 × 100 = 47.06%, which is approximately 47%. This is the standard markup calculation for desired profit after discount.

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