Question

Ramesh marked the price of an article 50% above the cost price and sells that article after giving 20% discount and makes profit of Rs. 300. Find the cost price of an article.

1. Rs. 1500
2. Rs. 1800
3. Rs. 1200
4. Rs. 1000

Answer 1

Correct Answer - Option 1 : Rs. 1500

Given:

Profit = Rs. 300

Formula used:

Markup price = (cost price) × (100 + % above)/100

Selling price = Markup price × (100 - % discount)/100

Cost price = selling price – profit

Calculation:

Let the cost price of article be Rs. x

Markup price = x × (100 + 50)/100

⇒ Markup price = x × 150/100

⇒ Markup price = 1.5x

Selling price = 1.5x × (100 - 20)/100

⇒ Selling price = 1.5x × 80/100

⇒ Selling price = 1.2x

Cost price = selling price – profit

⇒ x = 1.2x – 300

⇒ 0.2x = 300

⇒ x = 300/0.2

⇒ x = Rs. 1500

∴ The cost price of an article is Rs. 1500.