In order that there may be a profit of 20% after allowing

In order that there may be a profit of 20% after allowing a discount of 10% on the marked price, the cost price of an article has to be increased by

1. 30%
2. 33%
3. 33¹/₃%
4. 33²/₃%

Correct Option: C

Let MP = ₹ N
∴ SP = N x (100 - 10)/100 = ₹ 9N/10
∴ CP = (9N/10) x [100/(100 + 20)] = ₹ 3N/4
Thus, CP has to be increased by = [(N - 3N/4) / (3N/4)] x 100%
= [(N/4) / (3N/4)] x 100 %
= 33¹/₃ %

Discount

Aptitude

Correct Option: C