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A dealer marked the price of an item 20% above cost price. He allowed two successive discounts of 20% and 25% to a customer. As a result he incurred a loss of Rs.812. At what price did he sell the item to the customer?
  • a)
    1875
  • b)
    2088
  • c)
    2155
  • d)
    2258
  • e)
    None of these
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
A dealer marked the price of an item 20% above cost price. He allowed ...
CP = 100
MP = 120
120*80/100 = 96; 96*75/100 = 72
Loss = 100 – 72 = 28%
CP = 100/28*812 = 2900
SP = 2900*72/100 = 2088
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Most Upvoted Answer
A dealer marked the price of an item 20% above cost price. He allowed ...
Given:

Price marked by dealer = 120% of Cost Price

Discount 1 = 20%

Discount 2 = 25%

Loss incurred = Rs. 812

To find: Selling price to the customer

Approach:

Let's assume the cost price of the item is Rs. 100.

Then,

Price marked by dealer = Rs. 120

Discount 1 = 20%, so Selling price after Discount 1 = Rs. 96

Discount 2 = 25%, so Selling price after Discount 2 = Rs. 72

Now we know that the dealer incurred a loss of Rs. 812.

Loss = Cost Price - Selling Price

Selling Price = Cost Price - Loss

Selling Price = 100 - 812 = Rs. -712 (which is not possible)

This means that our assumption that cost price is Rs. 100 is incorrect.

Let's assume the cost price of the item is Rs. x.

Then,

Price marked by dealer = 1.2x

Selling price after Discount 1 = 0.8(1.2x) = 0.96x

Selling price after Discount 2 = 0.75(0.96x) = 0.72x

Now we know that the dealer incurred a loss of Rs. 812.

Loss = Cost Price - Selling Price

Selling Price = Cost Price - Loss

Selling Price = x - 812

0.72x = x - 812

0.28x = 812

x = Rs. 2900

Therefore,

Cost Price = Rs. 2900

Price marked by dealer = 1.2(2900) = Rs. 3480

Selling price after Discount 1 = 0.96(2900) = Rs. 2784

Selling price after Discount 2 = 0.75(2784) = Rs. 2088

Hence, the correct option is (b) 2088.
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Community Answer
A dealer marked the price of an item 20% above cost price. He allowed ...
CP = 100
MP = 120
120*80/100 = 96; 96*75/100 = 72
Loss = 100 – 72 = 28%
CP = 100/28*812 = 2900
SP = 2900*72/100 = 2088
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A dealer marked the price of an item 20% above cost price. He allowed two successive discounts of 20% and 25% to a customer. As a result he incurred a loss of Rs.812. At what price did he sell the item to the customer?a)1875b)2088c)2155d)2258e)None of theseCorrect answer is option 'B'. Can you explain this answer?
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