What percentage above the cost price should a seller mark his goods so that after allowing a discoun...........

Quantitative Aptitude (MTS) Profit and loss

What percentage above the cost price should a seller mark his goods so that, after allowing a discount of 20% on the marked

price, he can earn a profit of 4%?

This questions was previously asked in

SSC MTS 15th July 2022 Shift-3

25%

28%

42%

30%

- Let's denote the cost price as \( CP \) and the marked price as \( MP \).

- If a seller allows a 20% discount, the selling price becomes 80% of \( MP \).

- We want the selling price to be 104% of the cost price, as the seller wants to make a 4% profit.

- Therefore, \( 0.8 \times MP = 1.04 \times CP \).

- Solving this equation for \( MP \), we get \( MP = \frac{1.04}{0.8} \times CP = 1.3 \times CP \).

- This means the marked price is 30% more than the cost price.

- Option: 1, 25%

- Incorrect, because it does not cover the profit margin after discount.

- Option: 2, 28%

- Incorrect, this is slightly below the needed profit margin.

- Option: 3, 42%

- Incorrect, this is more than needed to achieve a 4% profit.

- Option: 4, 30%

- Correct! This matches the calculated requirement for a 4% profit after a 20% discount.

Submit Error