Calculate Percentage Marked Above Cost Price with Profit and Discount
In this article, we will explore a practical scenario where a product's marked price is Rs 800, it is sold at a discount of 19%, and there is a profit of 8%. We will break down the process step-by-step to determine by what percentage the marked price was above the cost price. Let's begin.Understanding the Scenario
The problem requires us to find the percentage by which the marked price is above the cost price, given that the product is sold at a discount and makes a profit. Here are the key details: Marked price (MP) of the article: Rs 800 Discount: 19% of the marked price Profit: 8% of the cost price (CP)Steps to Solve the Problem
1. **Calculate the Selling Price (SP):**The marked price of the article is Rs 800, and it is sold at a discount of 19%.
Discount (19/100) × 800 152
Therefore, the selling price (SP) is:
SP MP - Discount 800 - 152 648
2. **Determine the Cost Price (CP):**Given that there is a profit of 8, the selling price is 108% of the cost price.
SP CP (8/100) × CP 1.08 × CP
From the previous calculation, SP 648. Therefore:
648 1.08 × CP
Solving for CP:
CP 648 / 1.08 600
3. **Calculate the Difference Between Marked Price and Cost Price:**The difference between the marked price and the cost price is:
Difference MP - CP 800 - 600 200
4. **Calculate the Percentage Marked Above the Cost Price:**The percentage by which the marked price is above the cost price is given by:
Percentage above CP (Difference / CP) × 100 (200 / 600) × 100 1/3 × 100 33.33%
Conclusion
Thus, the marked price is approximately 33.33% above the cost price.Further Considerations
Let's restate the same problem in a simplified mathematical form for clarity:
Cost - 8% of cost marked price - 19% of marked price OR Cost - 19/100 Cost 800 - 19/100 × 800 OR Cost × (1 - 19/100) 800 - 152 OR Cost × 81/100 648 OR Cost 648/81/100 600 Clearly, marked price / Cost 800/600 1.333... So, marked price is 33.33% (or 33 1/3%) above the cost.It is evident that the article was marked 33.33% above the cost price.
The formula for calculating the percentage marked above the cost price is indeed straightforward, making it a useful tool in sales and business analysis.
Using this method, you can easily calculate the markup for different pricing strategies. Understanding and applying this concept can significantly enhance your ability to strategize profitable selling points.