Question 70
A shopkeeper buys goods at 25% off the list price. He desires to mark the goods so that he can give a discount of 20% on the marked price and still have a psofit of 25% on the selling price. What percent of the list price, must be marked on the goods ?
Solution
We will assume the Selling Price = 100x. This gives his profit = 25% of SP i.e. 25x as he makes 25% profit on the Selling Price.
Now, the Cost Price for him = SP - Profit = 75x.
This Selling Price is achieved when he gave 20% discount on the MP.
This means that 0.8*MP = SP ==> MP = 125x.
Also, the CP is 25% off of the List Price. It means 0.75*LP = CP ==> LP = 100x.
MP is 125x and LP is 100x which means that MP is 125% of LP.
