A Shopkeeper gives 4 articles free on the purchase of every 12 articles. He also allow a discount of 20% to customer and still earn 20% profit. Find the ratio of the cost price to the marked price of the article?
Offer of the Shopkeeper: Buy 12 get 4 free = 16 articles Let the marked price of 1 article be Rs. 10 Marked Price of 16 articles = 10× 16 = 160 Selling Price of 12 articles = 10 × 12 = 120 Actual Selling Price of 12 articles (less discount) = 120 – 24 = 96 Profit % = 20 % ∴ Cost Price = 96 × 100/120 = 80 Cost Price : Marked Price = 80 : 160 = 1:2
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