Question

A boot seller marks his pair of shoes 20% above cost price but allows 20% discount on eid festival. how much does he gain or loss on pair of shoes for which he charges rs.12

Answer 1

Suppose the cost price of one pair shoe is 100 Rs. He adds 20% to it and the price becomes 100 x 120/100 = 120 Rs. On eid he allows a discount of 20%. Means 120 x 80/100 = 96. There is a loss of 4%. So he sells at Rs 12 which is at a loss of 4%. So the cost price is 12 x 100/96 = 12.5 Rs. So for every pair he loses 0.5 Rs.