Correct Answer - Option 1 : Rs. 600
Given:
MP of the article = Rs 840
Discount, (D) = 15%
Profit, (P) = 19%
Formula used:
Selling price, (SP) = Marked price × (100 – D%)/100
Cost price, (CP) = (Selling price × 100)/(100 + P%)
Concept used:
The discount is given on the marked price
Calculation:
SP = Marked price × (100 – D%)/100
⇒ 840 × (100 - 15)/100
⇒ 840 × (85)/100
⇒ 714
Now, CP = (Selling price × 100)/(100 + P%)
⇒ (714 × 100)/(100 + 19)
⇒ (714 × 100)/(119)
⇒ 600
∴ The cost price of the article is Rs 600