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How much is the maximum % discount that ...

How much is the maximum % discount that sheela can offer to her customer on her Marked Price so that she sells her product at no profit or loss, if she had already marked her product by 25% more than the cost price ?
A 25% B 20% C 30% D 40%

A

A)25%

B

B)20%

C

C)30%

D

D)40%

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to determine the maximum percentage discount that Sheela can offer on her marked price (MP) so that she sells her product at no profit or loss. ### Step-by-Step Solution: 1. **Define Cost Price (CP) and Marked Price (MP)**: - Let's assume the Cost Price (CP) of the product is 100. - According to the problem, the Marked Price (MP) is 25% more than the Cost Price. - Therefore, MP = CP + 25% of CP = 100 + (25/100) * 100 = 100 + 25 = 125. 2. **Determine Selling Price (SP) for No Profit or Loss**: - To sell at no profit or loss, Sheela must sell the product for the same price as the Cost Price. - Hence, Selling Price (SP) = Cost Price (CP) = 100. 3. **Calculate the Discount**: - The discount is the difference between the Marked Price and the Selling Price. - Discount = MP - SP = 125 - 100 = 25. 4. **Calculate the Discount Percentage**: - The discount percentage is calculated using the formula: \[ \text{Discount Percentage} = \left(\frac{\text{Discount}}{\text{Marked Price}}\right) \times 100 \] - Substituting the values we have: \[ \text{Discount Percentage} = \left(\frac{25}{125}\right) \times 100 = 20\% \] 5. **Conclusion**: - The maximum percentage discount that Sheela can offer to her customers while selling at no profit or loss is **20%**. ### Final Answer: **B. 20%**
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