Question

 If an article is sold at a discount of 30% to the marked price, it makes a loss of 20%. At what percent discount on marked price it will break even ?
1. 12.5%
2. 12%
3. 10%
4. 11%

Answer 1

Correct Answer - Option 1 : 12.5%

Given:

If an article is sold at a discount of 30% to the marked price, it makes a loss of 20%.

Concept used:

Profit and Loss

Calculation:

Discount of 30% is offered on MP

MP : SP = 10 : 7

It makes a loss of 20%

CP : SP = 5 : 4

MP : SP : CP = 40 : 28 : 35

To break it even means no profit no loss

Discount Percentage = \(\frac{5}{{40}} \times 100 = 12.5\% \)