Correct Answer - Option 4 : Rs. 1600
Given:
Marked price = 40% above above the cost of production
Discount = 25%
Profit = Rs. 80
Formula used:
S.P = M.P × [(100 – Discount%)/100]
Calculation:
Let CP be Rs. 100x
MP = Rs. 100x × (140/100) = Rs. 140x
SP = Rs. 140x × (75/100) = Rs. 105x
Profit = Rs. (105x – 100x) = Rs. 5x
According to the question,
⇒ 5x = Rs. 80
⇒ 100x = Rs. (80/5x) × 100x = Rs. 1600
∴ The CP of the article is Rs. 1600