Mohan offers to sell his article at a discount of 20%, but he marks his articles by increasing the price of each by 35%. What percentage would his gain be?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 8%.
| Understanding | Application |
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Mohan offers article at 20% discount but the marked price is already increased by 35%. Let the cost price is 100x. So, marked price of article = 100x + 35% of cost price = 100x + (35/100) X 100x = 100x + 35x = 135x Discount always calculated on the marked price. |
Selling price = Marked - 20% of marked price = 135x - (20/100) X 135x = 135x - 27x = 108x Profit = {(Selling Price - Cost Price)/Cost price} x 100 = {(108x - 100x)/100x} X 100 = (8x/100x) x 100 = 8% |