The marked price of mustard oil is 25% more than its cost price. At what percentage less than the marked price should it be sold to have no profit and no loss?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e 20%.
The marked price of mustard oil is 25% more than its cost price
Discount = (MP - SP)/MP × 100
Let the cost price be x
M.P. = 125x/100 = 5x/4
Since, no profit and no loss
So, S.P. = x
Excess price = 5x/4 - x = x/4
Discount = excess price/M.P. × 100
Discount = (x/4)/(5x/4) × 100
Discount = 1/5 × 100 = 20%