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What percentage above the cost price should a shopkeeper mark his goods so that even after giving a discount of 20% on the marked price, he can s
Question

What percentage above the cost price should a shopkeeper mark his goods so that even after giving a discount of 20% on the marked price, he can still make a profit of 20%?

A.

30%

B.

40%

C.

50%

D.

60%

Correct option is C

Step 1: The selling price after the discount

After giving a 20% discount on the marked price, the selling price (S.P.) will be:

S.P.=M × (1−0.20) = 0.80M

Step 2: Profit condition

The shopkeeper wants to make a profit of 20% on the cost price. This means the selling price should be:

S.P. = C × (1+0.20) = 1.20

Step 3: Set the two expressions for the selling price equal to each other

We know that the selling price after the discount is also the cost price plus the desired profit. So,

0.80M=1.20C

Step 4: Solve for the marked price

To find the marked price MMM, solve the equation:

M=1.20C0.80=1.5CMM = \frac{1.20C}{0.80} = 1.5CM

Step 5: Find the percentage above the cost price

The marked price MMM is 1.5 times the cost price, so the percentage above the cost price is:

Percentage above cost price = (1.5−1) × 100 = 50%

Final Answer:

The shopkeeper should mark the goods 50% above the cost price. So, the correct answer is C. 50%.

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