Question

how much percent more than the cost price should a trader mark his goods so that after allowing a discount of 20% on the marked price he stills make a profit of 20%

Answer 1

Trader should mark good's price , 50% above its cost price.

Step-by-step explanation:

Let assume that the cost price is = 100

Then to make the profit of = 20%

Trader has to sell his good at = 120

• => 100×20/100=20

• => 100+20=120

And this selling price is after given a discount of = 20%

So, the selling price is equal = 80%

• => 100-20=80%

Thus , The marked up price will be = 150

• => 120×100/80=150

The marked price = 150

which is 50% above the cost price

• => 150-100=50

• => 150-100=50=> 50/100×100=50%

So, the answer is that if the trader wants to earn a profit of 20% after giving a discount of 20% , he has to mark up the price more than 50% of the cost price.