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Classic markup-and-discount question — the kind that trips people up when there are successive discounts involved. Let's assign a cost price and work through each retailer.

Key concept being tested: Successive percentage changes (Percent and Interest Problems) — specifically, how successive discounts compound.

Let cost price = 100.

Step 1 — Retailer A: 50% markup → MP = 150. Then 40% discount on MP.
Selling price A = 150 × 0.60 = 90

Step 2 — Retailer B: 100% markup → MP = 200. Two successive 30% discounts.
After first discount: 200 × 0.70 = 140
After second discount: 140 × 0.70 = 98

Step 3 — Retailer C: 20% markup → MP = 120. 20% discount on MP.
Selling price C = 120 × 0.80 = 96

Step 4 — Order: B (98) > C (96) > A (90) → Answer: A (B > C > A)

Common trap: Students calculate B's double discount as a single 60% discount (thinking 30% + 30% = 60%), giving them 200 × 0.40 = 80. That's wrong — successive discounts are multiplicative, not additive. Two 30% discounts = 1 − (0.70 × 0.70) = 51% total discount, not 60%. This mistake flips B from the highest selling price to the lowest, completely reversing the order.

Also watch out for Retailer C — a 20% markup followed by a 20% discount does NOT get you back to cost price. You end up at 96, not 100. Equal markup and discount percentages are never a wash.

Answer: A (B > C > A)

Takeaway: Whenever you see successive discounts, always multiply the multipliers (0.70 × 0.70), never add the percentages — and remember that symmetrical markup and discount percentages will always result in a net loss, not a breakeven.
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Three retailers A, B, and C bought the same item for sale at the same cost price. Retailer A decided to have a 50% mark-up and offered 40% discount on the marked price. Retailer B had a 100% mark-up and offered two successive discounts of 30% and 30% on the marked price. Retailer C marked up by 20% but, owing to lack of demand, had to eventually sell on 20% discount on the marked price. The selling price for the retailers was in what order?

A. B > C > A
B. B > A > C
C. C > A > B
D. C > B > A
E. A > B > C


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Let’s us take the three cases one by one.

Case 1: Retailer A

Retailer A decided to have a 50% mark-up and offered 40% discount on the marked price.

50% mark up ( 2 ———————— 3)

40% discount ( 5 ———————— 3)

so final = 2*5 ———————— (3*3)

Multiply by 10, 100 ———————— 90


Case 2: Retailer B

Retailer B had a 100% mark-up and offered two successive discounts of 30% and 30% on the marked price.

100% mark up: (1 ———————— 2)

30% discount : ( 10 ———————— 7)

30% discount: ( 10 ———————— 7)

Final : 100 ———————— 98


Case 3: Retailer C

Retailer C marked up by 20% but, owing to lack of demand, had to eventually sell on 20% discount on the marked price.

Mark up 20% : ( 5 ———————— 6)

20% discount : ( 5 ———————— 4)

Final : 25 ———————— 24

multiply by 4 : 100 ———————— 96

So, 98 > 96 > 90

Thats , B > C > A

Option A
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Solution:

Let's consider the cost price for three retailers, A, B, and C, as $100.

Retailer A decided to have 50% mark-up= 100 * 50/100 = $150

Offered a discount 40% on the marked-up price = 150 * 40/100 = $90

Retailer B had a 100% mark-up = 100 * 100/100 = $100.

Offered two successive discounts of 30% on the marked price = 100* 30/100= $140

Second one = 140 * 30/100 = $98.

Retailer C marked up by 20% = 100 * 20/100 = $120

Sold on discount of 20% on the marked-up price = 120 * 20/100 = $ 96.

So, the correct answer is B>C>A.

Hence, Option A
ExpertsGlobal5Three retailers A, B, and C bought the same item for sale at the same cost price. Retailer A decided to have a 50% mark-up and offered 40% discount on the marked price. Retailer B had a 100% mark-up and offered two successive discounts of 30% and 30% on the marked price. Retailer C marked up by 20% but, owing to lack of demand, had to eventually sell on 20% discount on the marked price. The selling price for the retailers was in what order?

A. B > C > A
B. B > A > C
C. C > A > B
D. C > B > A
E. A > B > C


Experts' Global
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Sponsored


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ExpertsGlobal5
Three retailers A, B, and C bought the same item for sale at the same cost price. Retailer A decided to have a 50% mark-up and offered 40% discount on the marked price. Retailer B had a 100% mark-up and offered two successive discounts of 30% and 30% on the marked price. Retailer C marked up by 20% but, owing to lack of demand, had to eventually sell on 20% discount on the marked price. The selling price for the retailers was in what order?

A. B > C > A
B. B > A > C
C. C > A > B
D. C > B > A
E. A > B > C


Video explanation:

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