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?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e
Let’s assume Cost Price (CP) = ₹100
Marked Price (MP) = ₹(100 + x)
Price after 25% discount = (100 + x) × 0.75
Final Selling Price (SP) = (100 + x) × 0.75 × 0.92
SP = 100 + 15 = ₹115
⇒ (100 + x) × 0.75 × 0.92 = 115
⇒ (100 + x) × 0.69 = 115 (100 + x)
⇒ 100 + x = 115/0.69 = 166.67
⇒ x = 166.67 − 100 = 66.67 or