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Then, CP=0.8MP (20% discount) and SP = 1.2MP.

So, gain => SP/CP = 1.2/0.8 = 1.5 => 50%.


A trader allows a discount of 20% to the customer after marking the item up by 25%. Find his gain/loss%
if he is given a commission of 20% of the MP by the dealer.
1.
Soln: Traders SP = 0.8 X (1.25MP) = MP (since 20% discount on 25% raised price)
Traders CP = 0.8 MP (20% commission)
So, gain = SP/CP = MP/0.8MP = 1.25 => 25%.Then, CP=0.8MP (20% discount) and SP = 1.2MP.
So, gain => SP/CP = 1.2/0.8 = 1.5 => 50%.
A trader allows a discount of 20% to the customer after marking the item up by 25%. Find his gain/loss%
if he is given a commission of 20% of the MP by the dealer.
1.
Soln: Traders SP = 0.8 X (1.25MP) = MP (since 20% discount on 25% raised price)
Traders CP = 0.8 MP (20% commission)Then, CP=0.8MP (20% discount) and SP = 1.2MP.
So, gain => SP/CP = 1.2/0.8 = 1.5 => 50%.
A trader allows a discount of 20% to the customer after marking the item up by 25%. Find his gain/loss%
if he is given a commission of 20% of the MP by the dealer.
1.
Soln: Traders SP = 0.8 X (1.25MP) = MP (since 20% discount on 25% raised price)
Traders CP = 0.8 MP (20% commission)
So, gain = SP/CP = MP/0.8MP = 1.25 => 25%.
So, gain = SP/CP = MP/0.8MP = 1.25 => 25%.

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