Question

12. How much per cent above the cost price should a shopkeeper mark his goods so that after
allowing a discount of 10% on the marked price, he gains 8%?
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Answer 1

Answer:

How much percent above the cost price should a shopkeeper mark his goods so that after allowing a discount of 20% on the marked price, he gains 12%?

Nice question.

Here, assume sell price is S, Marked Price is M and Cost price is C

Profit = Sell Price- Cost Price = S -C

here sell price is after 20% discount on Marked Price = 0.8 * M

Now, target profit is 12% of Cost price = 0.12 *C

Keeping all the values in profit equation.

0.12 * C = 0.8 * M - C

Solve the above equation;

1.12 * C = 0.8 * M

M = 1.12/0.8 C = 1.4 C

Marked Price should be 1.4 times of Cost price to get the profit of 12% on product after sell.

Let’s use small example here.

A product is purchased for Rs. 100 = Cost price

So Marked price as per equation = 1.4* Cost price = 1.4 * 100 = Rs. 140.00

Now sell price = 0.8 * Marked price = 0.8*140 = Rs. 112.00

So profit = Sell price -Cost price = 112–100 = 12

So profit in percentage will be =profit/cost*100 = 12/100*100 = 12%