A shopkeeper allows a 20% discount on the marked price and still makes a 20% profit. What is the ratio of the marked price to the cost price? MCQ with Answer and Explanation

A shopkeeper allows a 20% discount on the marked price and still makes a 20% profit. What is the ratio of the marked price to the cost price?
A. 3:2
B. 4:3
C. 2:1
D. 5:4
Answer: Option A
Solution (By JKSSB Mock Tests)
Marked Price * 0.80 = Cost Price * 1.20. Marked Price / Cost Price = 1.20 / 0.80 = 1.5 = 3/2. Ratio is 3:2.

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Practice More Profit And Loss Questions

Question #1
An article is sold at a 15% profit. If its cost price decreases by 10% and selling price decreases by Rs. 21, the profit becomes 20%. Find the initial cost price.
A. Rs. 280
B. Rs. 250
C. Rs. 320
D. Rs. 300

Correct Answer: Option D


Explanation:
Let initial Cost Price = 100x. Initial Selling Price = 115x. New Cost Price = 90x. New Selling Price = 90x * 1.20 = 108x. Difference = 115x - 108x = 7x. 7x = 21. x = 3. Initial Cost Price = 100 * 3 = 300.

This question belongs to: Maths Profit And Loss
Question #2
A man sold two articles for Rs. 1000 each. On one he gains 20% and on the other he loses 20%. What is his overall gain or loss percent?
A. Loss 2%
B. Loss 4%
C. Gain 4%
D. No profit no loss

Correct Answer: Option B


Explanation:
CP of first = 1000/1.2 = 833.33; CP of second = 1000/0.8 = 1250; total CP = 2083.33; total SP = 2000; loss = 83.33; loss% = (83.33/2083.33)*100 = 4%.

This question belongs to: Maths Profit And Loss
Question #3
By selling an umbrella for Rs. 300, a shopkeeper gains 20%. During a clearance sale, the shopkeeper allows a discount of 10% on the marked price. His gain percentage during the sale season is:
A. 9%
B. 7%
C. 7.5%
D. 8%

Correct Answer: Option D


Explanation:
Marked Price = 300. Original SP = 300. Profit = 20%, so CP = 300 / 1.2 = 250. Discount during sale = 10% on MP. New SP = 300 - 30 = 270. Profit = 270 - 250 = 20. Profit % = (20 / 250) * 100 = 8%.

This question belongs to: Maths Profit And Loss