Question

A shopkeeper marks his goods in such a way that after allowing a discount of 20% on
the marked price, he still makes a profit of 25%. Find the ratio of the cost price and
the marked price.

Answer 1

Given, Discount = 25%

Discount = (MP × Discount %)/100

= (MP×25)/100 = Rs 25MP/100 SP = MP – Discount = (MP – 25MP/100) = (100MP – 25MP)/100 = 75MP/100

We know that the given profit = 50% Selling price = (100 + Gain %)/100 × CP = (100 + 50)/100 × CP = 150/100 × CP = 150CP/100

By equating both SP we get, 75MP/100 = 150CP/

100 75MP/150CP = 100/100 75MP/150CP = 1 (By cross multiplying)

CP/MP = 75/150 = 1/2 ∴

The ratio CP to MP = 1:2.

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