New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The ratio of the cost price and marked price of an

    article is 7:12, respectively. The article is sold after giving a discount of Rs. 540 such that there is a profit of 50%. Find the amount by which the article is marked up above its cost price. 
    A Rs 1280 Correct Answer Incorrect Answer
    B Rs 1250 Correct Answer Incorrect Answer
    C Rs 1125 Correct Answer Incorrect Answer
    D Rs 1800 Correct Answer Incorrect Answer

    Solution

    Let the cost price and marked price of the article be Rs. 7x and Rs. 12x, respectively Therefore, selling price of the article = 1.5 × 7x = Rs. 10.5x According to the question, 12x – 10.5x = 540 Or, x = 540/1.5 = 360 Therefore, amount by which article is marked up above its cost price = 12x – 7x = 5x = Rs. 1800

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