The marked price of an item is 25% more than the cost. What should be the discount on the selling price to earn 10% profit?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e.12%.
Let the Cost price is Rs.100 and the Marked price is 25% more than the cost price
So, the Marked price = Rs.125
To earn 10% profit the S.P. of the item must be
Selling price = 110% of C.P. = 110% Of 100 = Rs.110
Discount = Marked price - selling price
Discount = 125 - 110 = Rs.15
Discount% = Discount/Marked price × 100
Discount% = 15/125 × 100 = 12%