Business Mathematics and Statistics · Ch 1 — Profit and Loss
Marked Price and Discount
Marked Price and Discount
In retail trade, a shopkeeper usually fixes a price higher than the intended selling price and displays it on the article or on a price tag. This displayed price is the marked price (MP), also called the list price or catalogue price. To attract customers or clear stock, the shopkeeper then offers a discount — a reduction on the marked price.
Discount is always reckoned on the marked price (never on the cost price and never on the selling price):
Hence the selling price after a single discount of is
Three prices, three different bases
Keep the reference of each percentage straight:
- Profit% / Loss% are measured on the cost price.
- Discount% is measured on the marked price.
A single problem may involve all three prices at once — e.g. an article is marked above its cost price, then sold at a discount, and the question asks for the final profit or loss. Work through the chain in order, applying each percentage to its own correct base. …
The price printed on an article or its tag, before any discount; also called the list price or …
A reduction offered on the marked price. , and — always meas …
, where is the rate of discount on th …