Multiple choice

A dealer allows a discount of 12% on the marked price. How much per cent above the cost price, must he mark his goods so as to make a profit of 10%?

  1. 18%

  2. 20%

  3. 24%

  4. 25%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100, MP = 100 + x. After 12% discount: SP = 0.88(100 + x). For 10% profit: SP = 110. So 0.88(100 + x) = 110, 100 + x = 125, x = 25%. The goods must be marked 25% above cost price. Verification: MP = 125, discount = 15, SP = 110, profit = 10 on CP = 100.

Keep practicing — related questions