Multiple choice

A shop keeper provides a discount of 10 percent on marked price, to earn a profit of 26 percent by how many percent he should increase marked price over the cost price.

  1. 40

  2. 30

  3. 25

  4. 15

  5. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let CP = 100. Desired SP = 126 (26% profit). After 10% discount, SP = 0.9 × MP. So 0.9 × MP = 126, MP = 140. MP is 40% above CP (140 vs 100).