Question

A dealer marks an article 50% above the cost price and sells it to a customer allowing two successive discounts of 20% and 15% on the marked price. if he gains Rs.400 on the deal then the cost price of the article is? 
1. Rs.25,000
2. Rs.30,000
3. Rs.20,000
4. Rs.15,000

Answer 1

Correct Answer - Option 3 : Rs.20,000

Given:

Marked Price = 50% above the Cost Price

Profit = Rs.400

Successive Discounts = 20% and 15%

Formula Used:

Net Discount = Discount₁ + Discount₂ – [(Discount₁ × Discount₂)/100]

Calculation:

Let the CP be Rs.100

Then, MP = [(100 + 50)/100] × 100 = Rs.150

Hence, Net Discount = 20 + 15 – [(20 × 15)/100] = 32%

⇒ 32% of 150 = 32/100 × 150 = 48

⇒ SP = 150 – 48 = 102 

⇒ Profit = 102 – 100 = Rs.2 

According to the given question,

2 ratio = 400

∴ C.P = 100 ratio = 20000

∴ C.P of the article is Rs.20,000