What percentage above the cost price should a seller mark his goods so that, after allowing a discount of 20% on the marked price, he can earn a profit of 4%?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 30%
Let the cost price be Rs. 100
If he has to sell the item at a profit of 4%, then he must sell the product at Rs . 104.
This selling price is 80% of the marked price.
Thus, Marked price = (100/80) × 104 = 130
Thus, the marked price is 30% above the cost price.