Multiple choice

A man marked an article 40% above the cost price and then gave a discount of 10%. He made a net profit of Rs. 468 after paying a tax of 10% on the gross profit. What is the cost price of the article?

  1. Rs. 1950

  2. Rs. 2430

  3. Rs. 2000

  4. Rs. 2250
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = x. Marked price = 1.4x. Selling price after 10% discount = 1.4x × 0.9 = 1.26x. Gross profit = 1.26x - x = 0.26x. Tax = 10% of gross profit = 0.026x. Net profit = Gross profit - Tax = 0.26x - 0.026x = 0.234x. Given 0.234x = Rs. 468, so x = Rs. 2000.

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