The marked price of a pen is Rs. 60. After allowing a discount of 10% the merchant makes a profit of 20% what is the cost price of the pen.a)Rs 40b)Rs. 45c)Rs. 60d)Rs. 80e)None of theseCorrect answer is option 'B'. Can you explain this answer?

Question

Answer

Marked price=60rs.
discount=10%
profit=20%
then,
SP=90%of 60=54
CP=(100/100+20)×SP
=(100/120)×54
=45rs.

Answer

The correct option is B.
Marked price=60rs.
discount=10%
profit=20%
then,
SP=90%of 60=54
CP=(100/100+20)×SP
=(100/120)×54
=45rs.

Answer

Solution:
Given, marked price of the pen = Rs. 60
Discount offered = 10%
Profit earned = 20%

Let the cost price of the pen be x.

Selling Price: Selling price is the amount at which an article is sold.
Selling Price (SP) = Marked Price (MP) - Discount

SP = MP - (10/100)MP
SP = 0.9MP
SP = 0.9 x 60
SP = Rs. 54

Profit and Loss: Profit and loss are the two terms that are often used in business. Profit is the amount by which the revenue of a business exceeds its cost of goods sold. Loss is the amount by which the cost of goods sold exceeds the revenue of a business.

Profit = SP - CP
Profit = 54 - x

Given that, the merchant makes a profit of 20%.
Profit = 20% of CP
Profit = 20/100 x CP
Profit = 0.2x

Equating the above two equations, we get
54 - x = 0.2x
1.2x = 54
x = 45

Hence, the cost price of the pen is Rs. 45. Therefore, option (B) is correct.

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