Question

A retailer marks his goods 40% above the cost price. He allows a discount and still gains 19%. What was the discount percentage?

• A. 12%
• B. 15%
• C. 18%
• D. 10%

Answer 1

Answer:

B. 15%

To find the discount percentage, we can assume a base value for the cost price:

1. Cost Price (CP): Let the cost price be $100$.

2. Marked Price (MP): Since it is marked 40% above the cost price, 

   $\text{MP} = 100 + 40\% \text{ of } 100 = 140$.

3. Selling Price (SP): Since the retailer gains 19% overall, 

   $\text{SP} = 100 + 19\% \text{ of } 100 = 119$.

4. Discount: The discount is the difference between the marked price and the selling price:

   
   

   $\text{Discount} = \text{MP} - \text{SP} = 140 - 119 = 21$

5. Discount Percentage:

   
   $\text{Discount \%} = \left(\frac{\text{Discount}}{\text{MP}}\right) \times 100 = \left(\frac{21}{140}\right) \times 100 = 15\%$

The discount percentage is 15%.