Question
A merchant bought a product for Rs. ‘a’ and marked
it 120% above its cost price. He then sold it after giving two successive discounts of 600 and 10%, respectively, and earned a profit of Rs. a/2. Find the marked price of the product.Solution
Let Cost Price (CP) = Rs. a Marked Price (MP) after 120% markup = CP + 120% of CP = a + 1.2a = 2.2a Selling Price (SP) after both discounts = 2.2a – 600 – 0.10 * (2.2a – 600) = 1.98a – 540 According to the problem, Profit earned = Rs. a/2. Therefore, SP = CP + Profit = a + a/2 = 1.5a Or, 1.98a – 540 = a + 1.5a Or, 0.48a = 540 Or, a = 1125 Therefore, Marked price = 220% * 1125 = Rs 2475
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