Question

Having marked the above cost, a trader makes 300
after allowing a discount of 10 in the cost price​

Answer 1

Answer:

Explanation: First Let's talk about basic relation between cost price and selling price.

As we know that cost price is a 100% value and it always increases or decreases by same percentage value of profit or loss we face on cost price.

Selling price = cost price + % profit

To gain 33% profit, selling price should be 133%.

Now let's talk about basic relation between selling price and marked price.

Marked price is also a 100% value but it always decreases by same percentage value of discount we get on marked price.

Selling price = marked price - % discount

The selling price of 133% is a 95% value of marked price since we are getting a discount of 5% on marked price.

Marked price or 100% of this will be (133*100)/95 or 140%

Percentage mark up is calculated on cost price and marked price.

% mark up = marked price - cost price

Clearly we can see that to obtain a profit of 33% after allowing a discount of 5% the mark up should be (140–100) = 40%

Note:- All the values are taken in percentage