The marked price of an item is 1.4 times the cost price. In order to earn 23.2% profit, what per cent discount can a shopkeeper allow?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 12%.
Let's assume the cost price (CP) = ₹100
Marked price (MP) = 1.4 × 100 = ₹140
Profit percentage = 23.2%
Thus, the selling price (SP) = ₹123.2
Discount = MP - SP = 140 - 123.2 = ₹16.8
Discount percentage = (Discount/MP) × 100 = (16.8/140) × 100 = 12%
Therefore, the shopkeeper can allow a 12% discount to earn a 23.2% profit.