The marked price of an article is Rs. 1200. What is the cost price of the article? I. 20% discount is given on the marked price. II. The difference between the selling price and cost price of the article is Rs. 160.
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Only I
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Only II
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Either I or II
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Neither I nor II
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Both I and II
E
Correct answer
Explanation
This question asks for cost price given marked price of Rs. 1200. Statement I: 20% discount on MP means SP = 1200 × 0.8 = Rs. 960. Statement II: SP - CP = Rs. 160, so CP = SP - 160 = 960 - 160 = Rs. 800. Both statements together are necessary to find the cost price - I gives the selling price after discount, and II gives the relationship between SP and CP.