Question
An item's label price is 40% more than its original
price. The shopkeeper manages to earn 30% profit on it. If the label price exceeds the sale price by Rs. 210, what is the cost price?Solution
ATQ,
Let the cost price be Rs. 10x
So, marked (label) price = 10x × (1 + 40/100) = Rs. 14x
Selling price = 10x × 1.3 = Rs. 13x
ATQ,
14x - 13x = 210
⇒ x = 210
So, cost price = Rs. 10 × 210 = Rs. 2100
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