Question

If the ratio of Cost Price and Marked Price of an article is 3 ∶ 5 and a discount of 20% is offered on MP, the shopkeeper makes a profit of Rs. 50. Find the cost price of the article?
1. Rs. 120
2. Rs. 110
3. Rs. 150
4. Rs. 160

Answer 1

Correct Answer - Option 3 : Rs. 150

Given:

Ratio of CP and MP = 3 ∶ 5

Discount % = 20%

Profit = Rs. 50

Concept:

The difference between CP and SP is profit. After the discount is subtracted from MP, we get the SP. Use a constant in place of ratio then calculate the SP and CP.

Formula used:

SP = MP – Discount

Profit = SP – CP

Calculation:

Let the CP and MP = 3x and 5x

Discount = 20% of 5x = 1x

∴ SP = MP – Discount = 5x - 1x = 4x

∵ Profit = SP – CP

⇒ 50 = 4x - 3x

⇒ 50 = 1x

⇒ x = 50

∴ CP = 3x = 3 × 50 = Rs. 150