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

Correct option is B

Given:
The cost price (CP) is 64% of the marked price.
A discount of 12% is allowed on the marked price.
Formula Used:
Selling price (SP) after discount = Marked price - Discount.
Profit = Selling price - Cost price.
Profit percentage = $$\frac{\text{Profit}}{\text{Cost price}} \times 100$$​
Solution:

Let the marked price (MP) of the article be 100 units .

​$$\text{CP} = 64\% \text{ of MP} = 0.64 \times 100 = 64 \, \text{units}$$​​

​$$\text{Discount} = 12\% \text{ of MP} = 0.12 \times 100 = 12 \, \text{units}$$​​

​$$\text{SP} = \text{MP} - \text{Discount} = 100 - 12 = 88 \, \text{units}$$​​
Profit = SP - CP = 88 - 64 = 24 units
​$$\text{Profit percentage} = \frac{\text{Profit}}{\text{CP}} \times 100 = \frac{24}{64} \times 100 = 37.5\%$$​​
Alternate Method:
CP = 64 units, SP = 88 units.
Profit = 88 - 64 = 24 units.
Profit percentage =$$\frac{24}{64} \times 100 = 37.5\%$$​