Question 74

The marked price of a cup is 20% more than its cost price. What can be the maximum discount given while selling the cup so that there is no loss incurred? [Give your answer correct to 2 decimal place.]

Solution

The marked price of a cup is 20% more than its cost price.

Let's assume the cost price of a cup is '5y'.

MRP of a cup = 5y of (100+20)%

= 5y of 120%

= $$5y\times\frac{120}{100}$$

= $$5y\times\frac{6}{5}$$

= 6y

maximum discount given while selling the cup so that there is no loss incurred = $$\frac{6y-5y}{6y}\times100$$

= $$\frac{y}{6y}\times100$$

= 16.67% (approx.)

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