Question
A trader marks an article 60% above its cost price.
During a festival sale, he allows a discount of 25% on the marked price and still makes a profit of Rs 120 on the article. Find the cost price.Solution
Let cost price = C. Marked price = 1.60C Discount 25% ⇒ Selling price S = 0.75 × 1.60C = 1.20C Profit = S − C = 0.20C Given profit = 120 ⇒ 0.20C = 120 ⇒ C = 120 / 0.20 = 600 Cost price = Rs 600.
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