The marked price of a cup is 20% more than its cost price. What can be the maximum discount given while selling the cup so that there is no loss incurred? [Give your answer correct to 2 decimal place.]
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 16.67%
Given:
The marked price of a cup is 20% more than its cost price
Let the cost price of the cup be 100
Marked price = 120% of 100 = 120
If there is no loss and profit then
Selling price = Cost price
Required discount percentage = (Marked price - Cost price/Marked price) × 100
⇒ ((120 - 100)/120) × 100
⇒ 16.67%