A dealer allows 25 discount on the marked price of an article and gains 20 If the cost price of the ...........

Quantitative Aptitude (CPO) Profit and loss

A dealer allows 25% discount on the marked price of an article and gains 20%. If the cost price of the article increases by 20%, how

much discount percentage should he allow on the marked price so as to earn the same percentage of profit as before?

This questions was previously asked in

SSC CPO 13th Dec 2019 Shift-2

12%

8.5%

10%

7.25%

- Let's assume the cost price (CP) of the article is $100.

- With a gain of 20%, the selling price (SP) would be $120.

- If a 25% discount is given on marked price (MP), then $0.75 × MP = SP, implying MP = $160.

- If CP increases by 20%, the new CP = $120.

- To maintain a 20% gain on the new CP, new SP = $144.

- To find the new discount percentage, we use $MP = $160 and SP = (100% - Discount%) × $160 = $144.

- Solving, Discount% comes out as 10%.

Option 3: 10% is the correct discount percentage.

Submit Error