Question

The ratio of selling price to the marked price of an article is x : y whereas the ratio of its marked price to its cost price is 3: 2. If the profit earned on the article is 20% of the cost price, what is the ratio of the marked price to the selling price?

• A. 4:3
• B. 4:5
• C. 2:1
• D. 5:4

Answer 1

The Correct Option is D

Step 1: Define Variables 

Let the cost price be C, the marked price be M, and the selling price be S. The ratio of the marked price to the cost price is:

\[ M : C = 3 : 2 \]

So, we can express M in terms of C:

\[ M = \frac{3}{2}C \]

Step 2: Calculate the Selling Price

The profit is 20%, so the selling price is:

\[ S = C + 0.2C = 1.2C \]

Step 3: Find the Ratio of Marked Price to Selling Price

The ratio of marked price to selling price is:

\[ \frac{M}{S} = \frac{\frac{3}{2}C}{1.2C} \]

\[ = \frac{3}{2} \times \frac{1}{1.2} \]

\[ = \frac{3}{2.4} = \frac{5}{4} \]

Conclusion:

The ratio of the marked price to the selling price is 5:4.