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Profit, Loss & Discount · Question 53 of 72

Question 53

HardOriginal question

A shop offers 'buy 5, get 2 free' on identical towels and still makes a profit of 25%. By what percentage above cost price are the towels marked?

65%Correct answerYour answer75%Correct answerYour answer85%Correct answerYour answer125%Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

For 7 towels the customer pays the MP of 5.
Effective SP of one towel = $\frac{5}{7}$ of MP.
$\frac{5}{7}\text{MP} = 1.25\,\text{CP}$ , so MP = 1.75 CP.
The towels are marked 75% above cost.

Worth noting

The offer is a discount of $\frac{2}{7}$ , about 28.6%, not $\frac{2}{5} = 40\%$ . $25\% + 40\% = 65\%$ is the trap.

Concept: 'Buy x get y free' combined with a target profit
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsMarked price and discount

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