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    Question

    The ratio of the cost price and marked price of an

    article is 7:10, respectively. The article is sold after giving a discount of Rs. 400 such that there is a profit of 25%. Find the amount by which the article is marked up above its cost price. 
    A Rs 1200 Correct Answer Incorrect Answer
    B Rs 960 Correct Answer Incorrect Answer
    C Rs 2400 Correct Answer Incorrect Answer
    D Rs 1000 Correct Answer Incorrect Answer
    E Rs 1800 Correct Answer Incorrect Answer

    Solution

    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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