A pair of shoes is sold by a retailer at a 20% discount on the marked price, but the retailer still makes a 28% profit on the cost price. What is the ratio of the marked price to the cost price of the shoes?
- AOption (a)
8 : 5
- BOption (b)
7 : 4
- COption (c)
3 : 5
- DOption (d)
9 : 7
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Correct answer
8 : 5
Why this answer is correct
Shortcut Trick
The relation between Cost Price (CP) and Marked Price (MP) can be determined directly:
CP / MP = (100 − Discount%) / (100 + Profit%)
CP / MP = (100 − 20) / (100 + 28)
CP / MP = 80 / 128 = 5 / 8
⇒ MP / CP = 8 / 5
∴ The correct answer is 8 : 5.
Alternate Method
Given:
Discount on Marked Price = 20%
Profit on Cost Price = 28%
CP: 100x
SP: 128x
MP: 160x
+28% Profit
-20% Discount
MP : CP = 160x : 100x = 8 : 5
Calculations:
Let the Cost Price (CP) of the shoes be 100x.
⇒ Selling Price (SP) = 100x + 28% of 100x = 128x
The retailer offers a 20% discount on the Marked Price (MP).
⇒ SP = MP − 20% of MP = 80% of MP
⇒ 128x = (80 / 100) × MP = 0.8 × MP
⇒ MP = 128x / 0.8 = 160x
Now, finding the ratio of Marked Price to Cost Price:
⇒ MP / CP = 160x / 100x
⇒ MP : CP = 8 : 5
∴ The correct answer is 8 : 5.
Additional Information
Direct Relation Formula
CP / MP = (100 − Discount%) / (100 + Profit%). This direct ratio relation helps solve markup and discount questions instantly without assuming variables.
Successive Discount
When two consecutive discounts D1% and D2% are given, the equivalent single discount is calculated as: D1 + D2 − (D1 × D2) / 100.
Markup Percentage
Markup percentage is always computed on the Cost Price to arrive at the Marked Price. Formula: Markup % = [(MP − CP) / CP] × 100.