Multiple choice

A dealer is selling an article at a discount of 20%. If he makes 25% profit and marked price of the article is $400, find the cost price of the article.

  1. $220
  2. $250
  3. $256
  4. $260
  5. $282
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let the cost price be CP. The selling price is 80% of the marked price, so SP = 0.8 * 400 = 320. Since profit is 25%, SP = 1.25 * CP. Thus, CP = 320 / 1.25 = 256.

AI explanation

The selling price is calculated by applying the 20% discount to the marked price, so Selling Price = 400 times (1 - 0.20) = 320. Since this sale makes a 25% profit, the cost price times 1.25 equals the selling price of 320. Dividing 320 by 1.25 gives the cost price of 256.

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