Question

A toy seller sells his toy at successive discount of 37.5% and 12.5% respectively. Still he gains 5% profit. Find the ratio of MP & CP 

1. 15 :7
2.

2 : 1

3. 48 : 25
4. 24 : 25
5. 6 : 13

Answer 1

Correct Answer - Option 3 : 48 : 25

Given:

Profit% = 5%

Discount 1 = 37.5% Discount 2 = 12.5

To find: MP: CP

Formula used:

Selling price = Marked price (100 - discount 1)/100 × (100 - discount 2)/100

Calculation:

Let CP = 100 there is a profit of 5% on CP that is 105

Hence SP = 105

105 = MP [(100 - 37.5) / 100 × (100 - 12.5) / 100]

105 = MP 62.5 / 100 × 87.5 / 100

105 = MP 5/8 × 7/8

MP = 192

 MP : CP = 192 : 100

⇒ MP : CP = 48 : 25