Practice mode Profit and Loss

A trader allows a discount of 12.5% on the marked price and still gains 5%. What is the ratio of the cost price to the marked price?

Correct answer D. 5 : 6

Explanation

0.875 × MP = 1.05 × CP, so MP/CP = 1.05/0.875 = 6/5. Hence CP : MP = 5 : 6.

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