A shopkeeper buys some fruits at a discount of 10% on the marked price. For selling the item he increases the marked price. If he wants to get a profit of 25% after allowing a discount of 15%, then by what percentage should his marked price be greater than the original marked price? (Correct to a nearest whole number)
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 32 Percent.
Calculations:
Let the original cost price be 100x.
Selling price after 10% discount = 90% of 100x = 90x
Selling price (of shopkeeper) if profit is 25% = 125% of 90x = 112.5x
112.5x is the selling price if the given discount is 15%
New Marked price = 112.5x/(100 - 15)%
⇒ 132.35x
Hence, new marked price be greater than the original marked price = [(132.35x - 100x)/100x] × 100
⇒ 32.35% ≈ 32%