Question
A shopkeeper marks the price of an item 40% above its
cost price and then offers a discount of 25% on the marked price. If the shopkeeper still earns a profit of ₹180 on the item, find its cost price.Solution
Let the cost price be ₹x. Marked price = x + 40% of x = 1.4x. Selling price = Marked price - 25% of Marked price = 1.4x - 0.25(1.4x) = 1.4x × 0.75 = 1.05x. Profit = Selling price - Cost price = ₹180. 1.05x - x = 180 0.05x = 180 x = 180 / 0.05 = ₹3,600. Correct option: A) ₹3600
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