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:
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%.