A dealer offers a cash discount of 20% and still makes a profit of 20%. If he further sells 8 articles at a rate of 6 articles, then how much percentage above the cost price does he mark on each article?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 100%
Let the CP of an article be 100x.
SP of an article to get the profit of 20% = 120x.
Loss incurred by selling 8 articles at the rate of 6 articles = ( 8 - 6)/8 × 100 = 25%
Selling price of the article before incurred loss = 120 × 100/75 = 160x.
MP of the article before discount of 20% = 160x × 100/80 = 200x.
Required % = (200x - 100x)/100x × 100 = 100%.