Question : A dealer offers a cash discount of 20% and still makes a profit of 20%. If he further sells 8 articles at a rate of 6 articles, then how much percentage above the cost price does he mark on each article?
Option 1: 77.5%
Option 2: 100%
Option 3: 112.5%
Option 4: 87.5%
Correct Answer: 100%
Solution :
Let the mark price be denoted as MP, the cost price as CP and the selling price as SP.
Let the marked price of each article be $100x$.
SP of each article = $80x$
According to the question,
He is selling 8 articles at a rate of 6 articles.
SP of 8 articles = $80x \times 6 = 480x$
Now,
CP of 8 articles = $480x\times \frac{100}{120} = 400x$
CP of 1 article = $\frac{400x}{8} = 50x$
$\therefore$ Percent above the cost price = $\frac{100x - 50x}{50x} \times 100$ = 100%
Hence, the correct answer is 100%.
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