A dealer offers a cash discount of 20% and still makes a profit of 20%, when he further allows 16 articles to a dozen to a
particularly sticky bargainer. How much percent above the cost price were his wares listed?
(a) 100%
(b) 80%
(c) 75%
(d) 66 2/3%
Answers
The correct answer for this question is option A
Let the CP of the article be Rs. x, since he earns a profit of 20%, hence SP= X + 20% of X = 1.2x.
It is given that he incurs loss by selling 16 articles at the cost of 12 articles [loss = (16-12)/16 = 25%]
His selling price = SP - 25% of SP = SP*0.75;
Hence, SP*0.75 = 1.2X.
Or, SP = (1.2*x/0.75) = 1.6X.
This SP is arrived after giving a discount of 20% on MP.
Let MP = Y.
Y - 20% of Y = SP
0.80Y = 1.6X.
Y = 2X.
It means that the article has been marked 100% above the cost price. Or Marked Price was twice of cost price.
Let cp of one article=1 rs
Cp of 12article= 16 (given
Sp of 12 article= 16×120÷100
(given 20% profit)
= 96/5
Sp of 1 article =96/5÷12= 8/5
Then mp =8/5×5/4 =2
As cp= 1rs
So ANS is 100%