Question

How much percent above cp should a shopkeeper mark his goods that after allowing a discount of 20% on the mp he gains 12%?

Answer 1

Let the CP be Rs. X.
Profit%   = 12%
Sp          = (1+r/100)*CP
              = (1+12/100)*Rs. x
              = Rs.28x/25
Discount%= 20%
SP            = (1-d/100)*MP
RS. 28x/25 = (1-20/100)*MP
MP              =RS. 28x/25*5/4
                   =Rs. 7/5
Difference of MP and CP = RS. 7x/5-Rs.X
                                         = Rs. 2x/5
Percent                             = Diff./CP *100
                                          = (Rs. 2x/5)/RS. x/100
                                          = 40%
Ans. = The shopkeeper should mark his goods 40% above the CP.