Question

A shopkeeper allows 25% discount on the marked price of an article and still makes a profit of 20%. then what will be the ratio of the cost price and the marked price of an article?
1. 8 : 5
2. 5 : 8
3. 3 : 4
4. 4 : 3

Answer 1

Correct Answer - Option 2 : 5 : 8

Given:

A shopkeeper allows 25% discount on the marked price of an article

and still makes a profit of 20%.

Concept:

We calculate discount on MP and profit % on CP.

[(MP × (100 - discount)/100] = SP

[(CP × (100 + profit %)/100] = SP

Calculation:

According to the question,

[MP × (100 - 25)/100] = [CP × (100 + 20)/100]

⇒ MP × (75/100) = CP × (120/100)

⇒ MP × 75 = CP × 120

⇒ MP : CP = 120 : 75 = 8 : 5

∴ The ratio of CP and MP is 5 : 8.