A new mobile is introduced into the market and is marked at 25 above its original cost price What di...........

Quantitative Aptitude (CHSL) Profit and loss

A new mobile is introduced into the market and is marked at 25% above its original cost price. What discount should be given

on the marked price to gain a profit of 20%?

This questions was previously asked in

SSC CHSL 24th May 2022 Shift-2

10%

2.50%

- Original Cost Price (CP): Assume it is $100.

- Marked Price (MP): It is 25% above the cost price, making it $125.

- Desired Selling Price for 20% Profit: To have a 20% profit, the selling price should be $120.

- Required Discount: The difference between the MP ($125) and desired selling price ($120) is $5.

- Option 1 (5% Discount): 5% of $125 = $6.25 ? Final Selling Price = $125 - $6.25 = $118.75 ? Not sufficient for a 20% profit.

- Option 2 (10% Discount): 10% of $125 = $12.50 ? Final Selling Price = $125 - $12.50 = $112.50 ? Too low for a 20% profit.

- Option 3 (4% Discount): 4% of $125 = $5 ? Final Selling Price = $125 - $5 = $120 ? This gives the required 20% profit.

- Option 4 (2.50% Discount): 2.5% of $125 = $3.125 ? Final Selling Price = $125 - $3.125 = $121.875 ? Over the needed target.

Answer: Option 3 - 4%

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