Multiple choice

How much per cent above the cost price should a shopkeeper mark his goods so that after allowing a discount of 20% on the marked price, he still has a gain of 10% ?

  1. 10

  2. 25.5

  3. 30

  4. 37.5
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. Desired SP = 110. Let MP be x. 0.80x = 110, so x = 110 / 0.8 = 137.5. The markup is 37.5%.

AI explanation

Assume the cost price is Rs 100 so that the target selling price for a 10% gain is Rs 110. Let the marked price be M; applying the successive discount formula, Selling Price = M * (1 - 0.20), we get 110 = 0.80 * M, meaning M = 137.5. This marked price is 37.5% above the cost price.

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