Question

A Cup costing Rs 350 is marked to be sold at a price which gives a profit of 20%. What will be its selling price in a sale when discount of 30% is given on marked price?
1. Rs. 294
2. Rs.285
3. Rs. 282
4. Rs. 270
5. None of these

Answer 1

Correct Answer - Option 1 : Rs. 294

Given:

Cost of cup = Rs. 350

Marked price = 20% more than cost price

Discount = 30%

Formula used:

Marked Price = CP × [(100 + Profit%)/100]

Selling price = Marked Price × [(100 – Discount%)/100]

Calculation:   

Marked Price = Rs. 350 × (120/100)

⇒ Rs. 420

Now, Selling price = Rs. 420 × (70/100)

⇒ Rs. 294

∴ The selling price is Rs. 294