The selling price of an article is 32% more than its cost price, and the discount offered on its marked price is 12%. What is the ratio of its cost price to its marked price?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 2 : 3
The selling price links the two: it is 132% of the cost price and also 88% of the marked price (100% − 12% discount).
Selling price \(=1.32\times\) cost price
Selling price \(=0.88\times\) marked price
\(1.32\times\) cost price \(=0.88\times\) marked price
\(\displaystyle \frac{\text{cost price}}{\text{marked price}}=\frac{0.88}{1.32}=\frac{88}{132}=\frac{2}{3}\)
The ratio of cost price to marked price is 2 : 3.