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A shopkeeper marked the price of a product 20% above its cost price, but sold it giving a discount of 20%. He had a:
  • a)
    No profit no loss
  • b)
    Loss of 4%
  • c)
    Profit of 4%
  • d)
    None of the above
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A shopkeeper marked the price of a product 20% above its cost price, b...
Let the cost price of the product be Rs. ‘x’
Marked price = (100 + 20)% of x = 1.2x
Discount price = 20% of 1.2x = 0.24x
Selling price = Marked price – Discount price = 1.2x – 0.24x = 0.96x
Loss = Cost price – Selling price = x – 0.96x = 0.04x
Loss % = (0.04x/x) × 100 = 4%
∴ The shopkeeper had a loss of 4%
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A shopkeeper marked the price of a product 20% above its cost price, but sold it giving a discount of 20%. He had a:a)No profit no lossb)Loss of 4%c)Profit of 4%d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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