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Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
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What price should a shopkeeper mark on an article that costs him 400 to gain 20% after allowing a discount of 20%?
500
550
600
650
600
Given: Cost price = 400, Desired profit = 20%, Discount allowed = 20%
Cost price = 400, Desired profit = 20%, Discount allowed = 20%
Desired SP=CP×(1+10020),SP=MP×(1−10020)
Compute required selling price 400×1.20=480 then divide by 0.80 to get marked price 480÷0.8=600.
Mixing up discount on marked price with profit margin, leading to wrong marked price.
Determine required selling price
The shopkeeper wants 20% profit on cost 400, so required selling price is 480.
Desired SP=400×1.20=480
Relation between marked price and discount
A 20% discount means the selling price equals 80% of the marked price.
SP=MP×0.80
Solve for marked price
Set required SP equal to discounted price and solve: MP=480/0.80=600.
MP=0.80480=600
Verification
Discounted price = 600×0.80=480, profit = 480−400=80 which is 20% of 400.
600×0.80=480,480−400=80=20% of 400
C is correct because the marked price must be 600 to yield a 20% profit after a 20% discount.
The same approach works for successive discounts or profit after tax by converting each percentage to a multiplier.