By how much percent a shopkeeper must mark his goods above its cost price so as by giving 40% discount, he earns a profit of 26%.
Answer & explanation
Correct answer: option 4
C.P. : MRP = (100 - Discount)% : (100 + Profit)%
= (100 - 40)% : (100 + 26)%
= 60% : 126%
= 10 : 21
C.P. = 10R
MRP = 21R
So, shopkeeper marks up his goods by = \(\frac{21R\;-\;10R}{10R}\)× 100% = \(\frac{11}{10}\) × 100% = 110%