Question

How much percent above the CP should a shopkeeper mark his goods so that after allowing a discount if 10% on the marked price, he gains 8% ?

Answer 1

Profit =S.P-C.P
8/100*cp=sp-cp
sp=cp+0.08cp
sp=1.08cp
Now marked price(m.p)
sp=mp-10mp/100
sp=mp-0.1mp
sp=0.9mp
now sp=1.08cp
1.08cp=0.9mp
mp=1.08cp/0.9
mp=1.2cp
mp=cp +0.2cp
mp=cp+ 20%cp
Hence the answer is 20%
Hope it helps..
:)

Answer 2

Gain of 20% => SP = 120% of CP

Discount of 25% => SP = 75% of MP

=> 120% CP = 75% MP

=> MP/CP = 120/75 x 100 = 160%

= > Article should be marked up by 60% to gain 20% after giving 25% discount.

Check :

CP = 100

MP = 160

Disc = 25% = 40

SP = 160–40= 120

Gain = 120 - 100 = 20

= 20% of CP