Question
The ratio of the cost price and marked price of an
article is 4:7, respectively. The article is sold after giving a discount of Rs. 800 such that there is a profit of 25%. Find the amount by which the article is marked up above its cost price.ÂSolution
Let the cost price and marked price of the article be Rs. 4x and Rs. 7x, respectively Therefore, selling price of the article = 1.25 × 4x = Rs. 5x According to the question, 7x – 5x = 800 Or, x = 800/2 = 400 Therefore, amount by which article is marked up above its cost price = 7x – 4x = 3x = Rs. 1200
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