Correct Answer - Option 3 : 12.5%

**Given:**

30% discount to marked price

Loss percentage = 20%

**Concept used:**

It will reach break-even when SP = CP

SP = CP × (100 - L)%

**Calculation:**

Let the marked price be MP and the cost price be CP.

MP × (100 - 30)% = CP × (100 - 20)%

MP/CP = 8CP/7

Let the discount on MP to reach break even be d%

MP × (100 - d)% = SP

8CP/7 × (100 - d)% = CP

(100 - d)/100 = 7/8

d = 100/8 = 12.5%

**∴ Required discount is 12.5%.**