The cost price of an article is 64% of the marked price. Calculate the gain percentage after allowing a discount of 12%.

Correct option is C

Given:

Cost price of the article is 64% of the marked price.

Discount percentage = 12%

Formula used:

Selling Price (S.P.) = Marked Price - Discount

Gain = Selling Price - Cost Price

Gain Percentage =$$\dfrac{\text{Gain}}{\text{Cost Price}} \times 100$$​​

Solution:

Let the Marked Price (M.P.) be x.

The Cost Price (C.P.) is 64% of the Marked Price:

C.P. = 0.64 × x

The Discount is 12% of the Marked Price:

Discount = 0.12 × x

The Selling Price (S.P.) is:

S.P. = x − 0.12 × x = 0.88 × x

Gain = S.P. - C.P. = 0.88x - 0.64x = 0.24x

Gain Percentage =$$\dfrac{0.24x}{0.64x} \times 100 = \dfrac{0.24}{0.64} \times 100 = 37.5\%$$​

The gain percentage is 37.5%.