Multiple choice

Rohit, a toy store owner, sets prices strategically to ensure profitability. After offering a promotional discount of 30% during a festive season, Rohit still achieves a 26% profit on each toy sold. What is the percentage mark-up above the cost price that Rohit applies to his toys?

  1. 70%

  2. 75%

  3. 80%

  4. 85%

  5. a
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100. Profit = 26%, so SP = 126. Discount = 30%, so SP = MP * 0.7. 126 = MP * 0.7 => MP = 126 / 0.7 = 180. Mark-up = (MP - CP) / CP = (180 - 100) / 100 = 80%.

AI explanation

Let the cost price be 100, making the selling price 126 after the 26% profit is applied. Since this selling price results from a 30% discount on the marked price, it represents 70% of the marked price. Solving the equation 0.70 times the marked price equals 126 gives a marked price of 180. This indicates the markup percentage above the cost price is 80%.

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