Question

Renu marks an article at Rs.36.50 above the cost price. She incurs a loss of 20% when she sells the article after allowing 36% discount on its marked price. What is the cost price of the article?
1. Rs.148
2. Rs.146
3. Rs.154
4. Rs.160

Answer 1

Correct Answer - Option 2 : Rs.146

Given:
Renu marks Rs. 36.50 above the Cost price.

Incurs loss of 20% when she offers 36% discount

Formula Used:

Loss = Cost price – Selling price

Calculation:

Let the Marked price be Rs. 100 

36% discount on marked price

Selling price of an article,

⇒ 100 – 36% of marked price

⇒ 100 – (36/100) × 100

⇒ 100 – 36

⇒ Rs. 64

Selling price of an article is Rs. 64

She incurs loss of 20%

⇒ 20/100

⇒ 1/5

Loss of Rs. 1 on cost price of Rs. 5

Selling price = Cost price – Loss

⇒ selling price = 4

Now,

4 = 64

⇒ 1 = 64/4

⇒ 1 = 16

⇒ 5 = 5 × 16

⇒ 5 = Rs. 80

Now the marked price is increased by,

⇒ 100 – 80

⇒ 20 

According to the question,

⇒ 20 = 36.50

⇒ 1 = 36.50/20 

Cost price is Rs. 80

⇒ 80 × 36.50/20

⇒ 4 × 36.50

⇒ 146

∴ The cost price of an article is Rs. 146