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The cost price of a toy is ₹210. What should be its MRP so that after a discount of 5% the shopkeeper gains 90%?
₹480
₹400
₹420
₹450
₹420
Use the ratio: MRP=CP×95190=CP×2. Since CP=210, MRP=210×2=420.
Cost Price (CP) = ₹210, Profit Percentage = 90%, Discount = 5%
MRP=100−Discount%CP×(100+Profit%)
Use the ratio: MRP=CP×95190=CP×2. Since CP=210, MRP=210×2=420.
Students often calculate the 90% gain on the MRP rather than the Cost Price, or subtract the discount from the wrong base value.
Calculate the Selling Price (SP)
To achieve a 90% gain on a cost price of CP=210, calculate the selling price using the profit percentage.
SP=210×(1+0.90)=210×1.9=399
Apply the discount formula
The Selling Price is 95% of the Marked Price (MRP) because of the 5% discount.
SP=MRP×(1−0.05)⇒399=MRP×0.95
Solve for MRP
Divide the selling price by 0.95 to find the original marked price.
MRP=0.95399=420
C is correct because the calculated Marked Price is ₹420, satisfying a 90% gain after a 5% discount.
This concept is central to commercial mathematics and frequently appears in profit-loss-discount chains where you must solve backwards from CP to MRP.