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1. A dealer offers a cash discount of 20% and still makes a profit of 20%, when he further allows 16 articles to a dozen to a particularly sticky bargainer. How much percent above the cost price were his wares listed?
It is given that he incurs loss by selling 16 articles at the cost of 12 articles [loss = = 25%]
His selling price = SP - 25% of SP = SP × 0.75
Hence, SP × 0.75 = 1.2X
Or, SP = = 1.6X
This SP is arrived after giving a discount of 20% on MP.
Let MP = Y
Y - 20% of Y = SP
0.80Y = 1.6X
Y = 2X
It means that the article has been marked 100% above the cost price. Or Marked Price was twice of cost price.
Solution:
Let the CP of the article be Rs. x, since he earns a profit of 20%, hence SP = X + 20% of X = 1.2xIt is given that he incurs loss by selling 16 articles at the cost of 12 articles [loss = = 25%]
His selling price = SP - 25% of SP = SP × 0.75
Hence, SP × 0.75 = 1.2X
Or, SP = = 1.6X
This SP is arrived after giving a discount of 20% on MP.
Let MP = Y
Y - 20% of Y = SP
0.80Y = 1.6X
Y = 2X
It means that the article has been marked 100% above the cost price. Or Marked Price was twice of cost price.