Question
An item is initially marked up by
20%, followed by a 10% discount, and sold for Rs. 756. If the goal is to achieve double the profit % of the previous transaction while offering a 20% discount, what should the new markup % be?Solution
ATQ, Let the cost price of the item be Rs. ‘a’. Therefore, 1.2 × 0.9a = 756 Or, 1.08a = 756 Or, a = 756/1.08 = Rs. 700 Profit % = {(756 – 700)/700} × 100 = 8% In second case, Selling price = 1.16 × 700 = Rs. 812 Marked price of the item = 812/0.80 = Rs. 1015 Required % = {(1015 – 700)/700} × 100 = 45%
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