Question
A dealer purchased an item for Rs. ‘a’ and marked it
130% above its cost price, then sold it after applying two successive discounts of 700 and 10%, respectively, and made a profit of Rs. 3a/4. Find the marked price of the item.Solution
Let Cost Price (CP) = Rs. a Marked Price (MP) after 130% markup = CP + 130% of CP = a + 1.3a = 2.3a Selling Price (SP) after both discounts = 2.3a – 700 – 0.10 * (2.3a – 700) = 2.07a – 630 According to the problem, Profit earned = Rs. 3a/4. Therefore, SP = CP + Profit = a + 3a/4 = 7a/4 Or, 2.07a – 630 = 7a/4 Or, 1.28a = 630 Or, a = 1968.75 Therefore, Marked price = 230% * 1968.75 = Rs 4528.125
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