Question

A shopkeeper is offering 20% direct discount on the sale of children's clothes and still earns 30% profit. What is the markup percentage on cost price?

1. 35.67%
2. 59.51%
3. 62.50%
4. 43.54%

Answer 1

Correct Answer - Option 3 : 62.50%

Given:

Discount = 20%

Profit = 30%

Calculation:

Let M.P be 100x

S.P = (80/100) × 100x = 80x 

Now, Profit = 30%

S.P = 130 and C.P = 100

So, S.P is same 

130 = 80x 

⇒ x = (80/130)

C.P = (80/130) × 100 = 800/13

According to the question, we get

[(M.P - C.P)/C,P] × 100

⇒ {[100 - (800/13)]/(800/13)} × 100

⇒ [(500/13)/(800/13)] × 100

⇒ 62.50%

∴ The markup percentage on cost price is 62.50%.