Question
If an article is sold at a discount of 30% to the marked
price, it makes a loss of 20%. At what per cent discount on the marked price will it break even?Solution
Let the marked price be MP and the cost price be CP. MP × (100 - 30)% = CP × (100 - 20)% MP/CP = 8CP/7 Let the discount on MP to reach break even be d%. MP × (100 - d)% = SP 8CP/7 × (100 - d)% = CP (100 - d)/100 = 7/8 d = 100/8 = 12.5%
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