A shopkeeper offers 30% off on MRP of his articles. In addition, he gives one article free for every four articles purchased. Even after all these offers, the shopkeeper manages to get a profit of 12%. By what percent has he marked up his articles?
Let MRP of his articles is 100 each. So when he sells four articles for 400, the customer will get one more article for
free. Also customer is not to pay complete 400 but 30% lesser i.e. 400 – 30% of 400 = 280.
It’s given that the shopkeeper is still making a profit of 12%
i.e. 280 = CP + Profit = CP + 12% of CP
So CP = 250 i.e. five articles whose MRP was 500 cost him 250 only.
Thus the required mark up percentage is = (500-250)/250×100 = 100%.