Question

A shopkeeper is giving 6 kg of rice at the price of 5 kg. what should be the mark up on the cost price to make a profit of 20%?

Answer 1

$30 \times 120 \div 80$

Answer 2

Answer:

Mark up on the cost price to make a profit of 20% is 44%.

Step-by-step explanation:

Given : A shopkeeper is giving 6 kg of rice at the price of 5 kg.

To find : What should be the mark up on the cost price to make a profit of 20%?

Solution :

Let x be the cost price per kg of rice.

The cost price of 6 kg of rice = 6x

The profit margin is 20%.

The selling price is $SP=\frac{G\%+100}{100}\times CP$

$SP=\frac{20+100}{100}\times 6x$

$SP=\frac{120}{100}\times 6x$

$SP=1.2\times 6x$

$SP=7.2x$

This is the price charged for 5 kg of rice.

So, The selling price of 1 kg of rice is

$SP=\frac{7.2x}{5x}=1.44$

In percentage, 1.44=144%

i.e. The cost price is 144%-100%=44%

Therefore, Mark up on the cost price to make a profit of 20% is 44%.