Question

A retailer allows a trade discount of 20% on the cost.By how much percent above the cost,should the product be labelled for sale to gain 20%?​

Answer 1

Answer:

50%  above the cost, the product be labelled

Step-by-step explanation:

Let say Cost Price = C

& Marked Price = M

A retailer allows a trade discount of 20%

Discount = (20/100)M = 0.2M

Selling Price = M - 0.2M = 0.8M

Gain 20 %

= (20/100)C = 0.2C

Selling Price = C + 0.2C = 1.2C

0.8M = 1.2C

=> M = 1.5C

M -C = 1.5C - C = 0.5C

% Higher Labelled = (0.5C/C) * 100 = 50%

50%  above the cost, the product be labelled