A dealer offers a discount of 10% on the marked price of an article and still makes a profit of 20%. If its marked price is Rs 1200, then the cost price of the article isa)Rs 900b)Rs 800c)Rs 700d)Rs 600Correct answer is option 'A'. Can you explain this answer?

Question

Answer

Given:
- Marked price of the article = Rs 1200
- Dealer offers a discount of 10% on the marked price
- Dealer still makes a profit of 20%

To find:
- Cost price of the article

Explanation:

Let's assume the cost price of the article is 'C'.

Profit Percentage:
- Profit percentage = (Profit/Cost Price) × 100
- According to the given information, the dealer makes a profit of 20%, so we can write:
20 = (Profit/C) × 100
- Simplifying the above equation, we get:
Profit = (20/100) × C
= 0.2C

Selling Price:
- Selling price = Marked Price - Discount
Let's calculate the discount amount first:
Discount = (10/100) × Marked Price
= (10/100) × 1200
= 120
Selling Price = 1200 - 120
= 1080

Profit:
- Profit = Selling Price - Cost Price
= 1080 - C

Equation:
- According to the given information, the dealer still makes a profit of 20%.
- So, we can write:
0.2C = 1080 - C

Solving the Equation:
- Adding C to both sides of the equation, we get:
0.2C + C = 1080
1.2C = 1080

- Dividing both sides of the equation by 1.2, we get:
C = 1080 / 1.2
C = 900

Therefore, the cost price of the article is Rs 900.

Similar Teaching Doubts

A dealer sells two bikes at Rs 14000 each. On one he gains 20% and on the other he loses 20%. Had he marked up their prices by 25% and give 10% discount, then what is his profit/loss percentage in the transaction?

A watch having marked price as Rs 8400 is sold for Rs 5040 after two successive discounts. If the first discount is 25% then what is the numerical value of second discount percentage?

A tradesman gives 4% discount on the marked price and gives 1 article free for buying every 15 articles and thus gains 35%. The marked price is increased above the cost price by.

A Raymond’s Trader marked the selling price of an article at 10% above the cost price. At the same time of selling he allowed certain discount and suffers a loss of 1%. He allowed a discount of

An article is listed at Rs 1925. A man purchases it at two successive discounts of 40% and 60% and spends Rs 185 on repairing of article. If he sells the article at a profit of 58.5%, then what is the selling price (in Rs) of the article?

Top Courses for Teaching

Suggested Free Tests

Related Content

Schools

Competitive Examinations

Quick Access Links

Technical Exams