TANCET - XAT Math Question : Profits

The question is from profit, loss, discounts, an Arithmetic Topic and the problem provides an understanding of the concept of discount and mark up.

Question

If a merchant offers a discount of 40% on the marked price of his goods and thus ends up selling at cost price, what was the % mark up?

1. 28.57%
2. 40%
3. 66.66%
4. 58.33%

Correct Answer - 66.66%. Choice (3).

Explanatory Answer

If the merchant offers a discount of 40% on the marked price, then the goods are sold at 60% of the marked price.

The question further states that when the discount offered is 40%, the merchant sells at cost price.

Therefore, selling @ 40% discount = 60% of marked price (M) = cost price (C)



or

i.e., a mark up 66.66%

Correct answer choice (3)