Multiple choice

A manufacturer marked an article at Rs. 50 and sold it allowing 20% discount. If his profit was 25%, then the cost price of the article was

  1. Rs. 40

  2. Rs. 35

  3. Rs. 32

  4. Rs. 30
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Selling price = 50 * (1 - 0.20) = 40. Profit = 25%. Cost price = SP / (1 + profit%) = 40 / 1.25 = 32.

AI explanation

The selling price is calculated by subtracting the 20% discount from the marked price, so 80% of Rs. 50 equals Rs. 40. Using the cost price formula where Cost Price equals Selling Price multiplied by 100 divided by (100 plus profit percentage), we get 40 multiplied by 100 divided by 125, which results in a cost price of Rs. 32.

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