A dealer offers a cash discount of 20% and still makes a profit of 20%, when he further allows 16 articles to a dozen to a particularly sticky bargainer. How much percent above the actual price price were his was the listed price of the article?
Let the cost price (CP) be x.
As dealer makes a profit of 20%,
selling price (SP) = 1.2x
But the dealer incurs loss by selling 16 articles at the cost of 12 articles.
So, SP of 16 articles = CP of 12 articles
Loss = 25%
Now, SP = 1.6x
80% of marked (or list) price (MP) = 1.6x
MP = 2x
Hence, list price is 100% above cost price.