Multiple choice

What should be the minimum mark up percentage such that after giving the discount of $\dfrac {200}{3}\%$, there will neither a loss nor a profit ?

  1. $133.3\%$
  2. $100\%$
  3. $150\%$
  4. $200\%$
  5. $300\%$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = 100. Discount = 200/3% = 2/3. SP = MP * (1 - 2/3) = MP/3. For no profit/loss, SP = CP = 100. So, MP/3 = 100, MP = 300. Markup = MP - CP = 300 - 100 = 200. Markup percentage = (200/100) * 100 = 200%.

AI explanation

Using the relation marked price multiplied by (1 minus discount percent) equals cost price, and knowing there is no profit or loss so selling price equals cost price, assume the cost price is 100. The discount is 200 divided by 3 percent, which is 2 divided by 3, so marked price multiplied by (1 minus 2 divided by 3) equals 100. This simplifies to marked price divided by 3 equals 100, meaning the marked price is 300. The markup percentage is 300 minus 100 divided by 100 multiplied by 100, which equals 200 percent. The result is 200 percent.

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