a shopkeeper after allowing a discount of 10% on the market price makes a profit of 8%.what percent above the cost price is it market.
0.9p = 1.08c
p = 1.08/0.9 c = 1.2c
so, the price is a 20% markup before discount
To find the percent above the cost price that the market price is, we need to follow these steps:
1. Let's assume the cost price of the item is "x".
2. The shopkeeper offers a discount of 10%, so the selling price becomes 90% of the market price.
3. After allowing the discount, the shopkeeper makes a profit of 8%, which means the selling price is 108% of the cost price.
4. We can set up the equation: 108% of x = 90% of the market price.
Mathematically, this can be written as: (108/100) * x = (90/100) * market price.
5. Simplifying the equation, we get (1.08)x = (0.9) * market price.
6. Dividing both sides of the equation by (0.9), we have: market price = (1.08/0.9) * x.
7. Simplifying further, we get: market price = 1.2x.
8. To find the percent above the cost price, we can calculate the difference between the market price and the cost price, which is (1.2x - x) = 0.2x.
9. The percent above the cost price is calculated as (0.2x/x) * 100% = 20%.
Therefore, the market price is 20% above the cost price.