Question

How much per cent above the cost price should a shopkeeper mark his goods so that after allowing a discount of 10% on the marked price, he gains 8%?

Answer 1

Let’s assume Cost Price of Product to be Rs.100. 

Given he gains 8% on selling price would be 

Selling Price = (100 + 8% of 100) = Rs.108 

Discount = 10% 

Let x be the marked price. 

Market Price – Discount = Selling Price 

x - (10% of x) = 108 

x – x/10 = 108 

9x/10 = 108 

x = 120 

Cost price is 100 

Selling price is 108 

Marked price is 120 

So, Market Price is 20% above Cost Price.