A trader allows a trade discount of 20% and a cash discount of 6¼% on the marked price of the goods and gets a net gain of 20% on the cost. By how much above the cost should the goods be marked for the sale?

A trader allows a trade discount of 20% and a cash discount of 6¼% on the marked price of the goods and gets a net gain of 20% on the cost. By how much above the cost should the goods be marked for the sale?

Let the marked price be x.

Now with a discount of 20%,

S.P = x – 20% of x

S.P = 80x/100

Other discount of 6¼ = 6.25% is provided

Hence, S.P = 80x/100 – 6.25% of 80x/100

S.P = 80x/100 - 5x/100

S.P = 75x/100

Given that this discount on the marked price leads to 20% gain on C.P.

Therefore,

75x/100 = C.P + 20/100 C.P

75x/100 = 120C.P/100

Hence, x = 120/75 C.P

Now increase in actual cost price, y = Marked price – C.P

y = 120/75 C.P – C.P

y = 45/75 C.P

In percentage,

Mark up% = (45/75 C.P)/C.P × 100

Mark up % = 45 × 100/75

Mark up % = 60%

• Two types of rice (type 1 and type 2) were mixed in the respective ratio of 1 : 3. The mixture was then sold @ 75.60 per kg to gain a profit of 20%. If the price of type 1 rice is Rs. 75 per kg, what is the price of type 2 price per kg?
• A person ordered 4 shirts of brand A and some shirts of brand B. The price of one shirt of brand A was twice that of brand B. When the order was executed, it was found that the numbers of the two brands has been interchanged . This increased the bill by 4
• The letters A, B, C, D, E, F and G not necessarily in that order, stand for seven consecutive integers from 1 to 10, D is 3 less than A, B is the middle term. F is as much less than B as C is greater than D, G is greater than F.
• A vessel contains 20 litres of acid. 4 litres of acid is taken out of the vessel and replaced by the same quantity of water. Next 4 litres of the mixture are with, drawn, and again the vessel is filled with the same quantity add left in the vessel with t
• A shopkeeper buys a blanket at a discount of 20% on the listed price from a wholesaler. The shopkeeper marks up the price by 15% on the listed price. A buyer pays Rs. 3795 to get it after paying sales tax rate of 10% on the price asked for. Find the profi