Let the cost price and marked price of the article be Rs. 7x and Rs. 10x, respectively Therefore, selling price of the article = 1.25 × 7x = Rs. 8.75x According to the question, 10x – 8.75x = 400 Or, x = 400/1.25 = 320 Therefore, amount by which article is marked up above its cost price = 10x – 7x = 3x = Rs. 960
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