Question

A shopkeeper sold books at Rs. 340 each after giving discount of 15% on marked price. Had he not given the discount, he would have earned a profit of 25% on cost price. What was the cost price of each book?
1. 400
2. 320
3. 340
4. 230

Answer 1

Correct Answer - Option 2 : 320

Given:

Selling price of each book = Rs. 340

Shopkeeper gives a discount of 15% on marked price.

Had he not given the discount, he would have earned a profit of 25% on cost price.

Formula Used:

Profit% = Profit/CP × 100

Loss% = Loss/CP × 100

Calculation:

From question,

Marked price × 85/100 = 340

MP = 400

Now, Cost price × 125/100 = 400 [As, If discount is not given, profit is 25%. It means book is being sold on Marked Price.]

CP = Rs.320

∴ Cost price of each book is Rs. 320