Correct Answer - Option 1 : Rs.250
Given:
SP of the article = Rs. 799.50
Successive discount rates = 18% and 22%
CP of the article = Rs. 1,000
Formula used:
Successive discount = x + y - (xy/100)
Calculation:
Let the MP of the article = a
Net effective discount rate = 18 + 22 - [(18 × 22)/100]
= 36.04%
∴ SP of the article ater discount = a - (a × 36.04/100)
= (100a - 36.04a)/100
= 63.96a/100
∵ SP of the article = Rs. 799.50
∴ 63.96a/100 = 799.50
⇒ a = (799.5 × 100)/63.96
⇒ a = 1250
∴ MP of the article = Rs. 1,250
∴ Profit if article sold at MP = MP - Cp
= 1250 - 1000
= Rs. 250