Question
A merchant sets the price of an
article 60% above its cost price and offers a discount of 25% while selling it. If his profit on the sale is Rs. 120, determine the cost price of the article.Solution
ATQ,
Let the cost price of the article be Rs. ‘20x’. So, the marked price of the article = 1.6 × 20x = Rs. ‘32x’. Selling price of the article = 0.75 × 32x = Rs. ‘24x’. ATQ, 24x – 20x = 120 Or, 4x = 120 Or, x = 30 So, the cost price of the article = 20x = 20 × 30 = Rs. 600.
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