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A trader buys goods at a 19% discount on the label price. If he wants to make a profit of 20% after allowing a discount of 10%, by what % should his marked price be greater than the original label price?
A) +8%
B) 3.8%
C) +33.33%
D) None of these
profitloss
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CP = 0.81 LP
Profit = (SPCP)/CP = 0.2, so SP = 1.2 CP
Discount = 10%, So, MP = SP/0.9 = 1.2/0.9 CP = 4/3 CP = 4/3 * .81 LP = 1.08 LP.
So, MP must be greater than LP by 8%.
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