Question

A retailer allows a trade discount of 25% and a further discount of 8% on the marked price of the products, if paid along with his shop's membership card. He makes a net profit of 15% on the cost. By what percentage are the products marked up by him?

• A. 66 2/3 %
• B. 84 1/3 %
• C. 59 2/3 %
• D. 46 1/3 %

Answer 1

Answer:

A. 66 2/3 %

Let the cost price be ₹100.

Net profit = 15%

So selling price:

SP=115

Let the marked price be (M).

Successive discounts:

• 25% discount ⇒ customer pays (75%)

• Further 8% discount ⇒ customer pays (92%) of that

So final selling price:

$M\times0.75\times0.92=115$

$M \times 0.69 = 115$
$M = \frac{115}{0.69} = 166.67$

Markup percentage:

$\frac{166.67-100}{100}\times100$

$=66 \frac{2}{3}\%$