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 ...
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
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.