Question : If a 60% discount is offered on the marked price and the selling price becomes equal to the cost price, then what was the percentage mark up?
Option 1: 100%
Option 2: 250%
Option 3: 150%
Option 4: 40%
Correct Answer: 150%
Solution :
Let the cost price (CP) be Rs. 100, then the selling price (SP) after the discount is also Rs. 100.
Since, after a 60% discount in marked price (MP), the selling price becomes equal to the cost price.
⇒ 0.4 × MP = 100
⇒ MP = Rs. 250
So, CP = Rs. 100 and MP = Rs. 250
⇒ Mark up percentage = $\frac{(250 -100)}{100}$ = 150%
Hence, the correct answer is 150%.
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