Correct option is C
Given:
Marked Price (MP) is 25% more than the Cost Price (CP).
Formula Used:
Discount percentage = [(Marked Price - Selling Price) / Marked Price] × 100
To still make a profit, Selling Price > Cost Price.
Solution:
Let Cost Price (CP) = Rs. 100
Then, Marked Price (MP) = 1.25 × 100 = Rs. 125
To ensure a profit, Selling Price (SP) must be more than Rs. 100.
The maximum discount is when SP = Rs. 100, i.e., no profit and no loss.
Discount = MP - SP = Rs. 125 - Rs. 100 = Rs. 25
Discount percentage = (25 / 125) × 100 = 20%