In a show room, the marked prices of various items are displayed in such a manner that after giving a 10% discount to the customers, the owner of the show room earns a profit of 20%. What is the ratio of the marked price and cost price of each item?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 4 : 3.
Given that
Discount (D) = 10%
Profit earned (P) = 20%
Marked price/Cost price = (100 + P)/(100 - D)
Marked price/Cost price = (100 + 20)/(100 - 10) = 120/90 = 4/3
Hence, the required ratio is 4 : 3