A dealer allows a discount of 10% on the market price .How much above the cost price must he mark his goods to make a profit of 8%?
we need
(1+x)(0.9) = 1.08
x = 0.20 = 20%
check: on $1.00 cost,
mark up to $1.20
discount = $0.12, so the final price is $1.08, or 8% profit
To find out how much above the cost price the dealer must mark his goods to make a profit of 8%, we need to go step by step.
Let's assume the cost price of the goods is x.
Now, the dealer wants to make a profit of 8%, which means the selling price should be 108% of the cost price:
Selling Price = Cost Price + 8% Profit
Selling Price = x + (8/100)x
Selling Price = x + 0.08x
Selling Price = 1.08x
Now, the dealer allows a discount of 10% on the market price, which means the selling price is 90% of the market price:
Selling Price = 90% of Market Price
1.08x = 0.9 * Market Price
Market Price = (1.08x) / 0.9
Market Price = 1.2x
Therefore, to make a profit of 8%, the dealer needs to mark his goods 20% above the cost price.