Correct Answer - Option 3 : I and III

**Given: **

Profit% = 26%

Discount% = 4%

**Formula Used: **

Profit = SP – CP

Discount = MP – SP

Profit% = (Profit /CP) × 100

Discount% = (Discount /MP) × 100

SP = {(100 + P%)/100} × CP

SP = {(100 – D%)/100} × MP

Where P is Profit, D is discount, CP is cost price, SP is selling price and MP is maximum retail price.

**Calculation:**

SP = {(100 + P%)/100} × CP

SP = {(100 – D%)/100} × MP

⇒ {(100 + P%)/100} × CP = {(100 – D%)/100} × MP

⇒ (100 + P%) × CP = (100 – D%) × MP

⇒ CP/MP = (100 – D%)/(100 + P%)

Putting D = 4 and P = 26

⇒ CP/MP = 96/126

⇒ 16/21

⇒ **MP ****∶**** CP = 21 ****∶ ****16**

SP = {(100 + 26/100} × CP

SP = (126/100) × CP

⇒ SP = (63/50) × CP

⇒ SP/CP = 63/50

⇒ **SP ****∶ ****CP = ****63 ****∶ ****50**

Only II is not correct

**∴ ****I and III are correct.**