Question
A retailer bought a gadget for Rs. ‘a’ and marked it
140% above its cost price. He sold it after giving two successive discounts of 800 and 25%, respectively, and achieved a profit of Rs. 2a/3. Find the marked price of the gadget.Solution
Let Cost Price (CP) = Rs. a Marked Price (MP) after 140% markup = CP + 140% of CP = a + 1.4a = 2.4a Selling Price (SP) after both discounts = 2.4a – 800 – 0.25 * (2.4a – 800) = 1.8a – 600 According to the problem, Profit earned = Rs. 2a/3. Therefore, SP = CP + Profit = a + 2a/3 = 5a/3 Or, 1.8a – 600 = 5a/3 Or, 0.4a = 1800 Or, a = 4500 Therefore, Marked price = 240% * 4500 = Rs 10,800
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