If the discount and profit percentage are both 20% by what percent is the marked price above the cost price?
Answer & explanation
Correct answer: option 2
Discount is always calculated on the marked price and profit is always calculated on the cost price.
So, let MP = 100, so according to the question
SP = 80 (After discount of 20% and including profit of 20%)
CP = \(\frac{80 }{120 }\) x 100 = \(\frac{ 200}{3 }\)
Marked price is above the cost price by 100 - \(\frac{ 200}{3 }\) = \(\frac{ 100}{3 }\)
Therefore, percentage = \(\frac{ 100}{3 }\) / \(\frac{ 200}{3 }\) x 100 = 50%