Hello once again this session is based on concept of marked price which comes under profit, loss and discount, now to understand this concept let’s say you are at Fashion Street you are buying a article which is initially priced at rs 150, now at Fashion Street if you have good bargaining skills if you have good negotiation skills you can break down the price of that article at even less than 50% of the initial price let’s say by bargaining you are able to get down at rupees 120 what do you think now is the shopkeeper making a loss here by selling it at rs 120 looking at the face it seems that he is making a loss but now look at the smile on his face he is still making a profit because the cost price for him is rupees 100 that is after buying it at rupees 100 he is adding some value to it and after that value addition the price which we get is initial price now this initial price or packaged price or MRP all this term represents the marked price that is the value which is added on cost price is called as mark up and now after selling at rupees 120 he makes a profit of rupees 20 now that reduction from 150 to 120 is called as discount which is 30 rupees so let us revisit all this terms the shop keeper cost price is rupees 100 he adds value to it that is mark up of 50 rupees and then we get the marked price as rupees 150 the mark up is defined as marked price minus cost price now he gives a discount of 30 rupees and then we get the selling price this discount is defined as marked price minus selling price and by selling it at rupees 120 he makes a profit which is defined as selling price minus cost price so we have introduce three new terms one mark up second is discount and the third is profit which you already know let us calculate all of them in terms of percentage, percentage profit you know that , that is defined as (profit % = profit/Cost price*100) which is 20/100*100 which is 1/5 which is 20%. Now percentage discount is always calculated on the base of marked price and hence discount /marked price* 100 which is 30/150*100 which is 1/5 which is also 20% the way we calculate percentage profit and percentage loss on base of cost price the same way we calculate percentage mark up also on the base of cost price i.e mark up/Cost Price* 100 i.e 50/100*100 i.e ½ which is 50% so that’s the concept of marked price. Now let us consider the statement a shopkeeper sells an article at 25 % discount there are different methods to evaluate.