Question 59

What percentage above the cost price should a seller mark his goods so that, after allowing a discount of 20% on the marked price, he can earn a profit of 4%?

Solution

Let's assume the cost price of the goods is '100y'.

Profit % = 4%

Selling price of the goods = 100y of (100+4)%

= 100y of 104%

= $$100y\times\frac{104}{100}$$

= 104y

Discount % = 20%

MRP of (100-20)% = 104y

MRP of 80% = 104y

MRP = $$\frac{104y}{80}\times\ 100$$

= 130y

Marked up percentage above the cost price = $$\frac{130y-100y}{100y}\times\ 100$$

= $$\frac{30y}{100y}\times\ 100$$

= 30%

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