A Shopkeeper gives 2 articles free on the purchase of every 10 articles. He also allows a discount of 20% to customer and still earn 25% profit. Find the ratio of the cost price to the marked price of the article?
Offer of the Shopkeeper: Buy 10 get 2 free = 12 articles Let the marked price of 1 article be Rs. 10 Marked Price of 12 articles = 10× 12 = 120 Selling Price of 10 articles = 10 × 10 = 100 Actual Selling Price of 10 articles (less discount) = 100 – 20 = 80 Profit % = 25 % ∴ Cost Price = 80 × 100/125 =64 Cost Price: Marked Price = 64: 120 = 8:15
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