New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    The ratio of the cost price and marked price of an

    article is 7:11, respectively. The article is sold after giving a discount of Rs. 300 such that there is a profit of 50%. 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. 11x, respectively Therefore, selling price of the article = 1.5 × 7x = Rs. 10.5x According to the question, 11x – 10.5x = 300 Or, x = 300/0.5 = 600 Therefore, amount by which article is marked up above its cost price = 11x – 7x = 4x = Rs. 2400

    Practice Next