The marked price of mustard oil is 25% more than its cost price. At what percentage less than the marked price should it be sold to have no profit and no loss?
This questions was previously asked in
Combined Graduate Level Examination Tier I 2023
Explanation:
- Understand the price relationship:
- The marked price is 25% more than the cost price.
- If cost price is \$100, then marked price is \$125.
- Calculate selling price for no profit no loss:
- Selling price must equal the cost price for no profit or loss.
- Therefore, if cost price is \$100, selling option must also be \$100.
- Determine the markdown percentage needed:
- To find the needed discount on the marked price:
- \((\text{Marked Price} - \text{Selling Price})/\text{Marked Price} \times 100\)
- \((125 - 100)/125 \times 100 = 20\%\)
- Analyze options for correct discount:
- Option 1: 15% - Not enough discount.
- Option 2: 20% - Correct! Results in no profit or loss.
- Option 3: 18% - Not enough discount.
- Option 4: 22% - More than required discount.
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By: Parvesh Mehta