Multiple choice

A dealer marks an article 40% above the cost price and sells it to a customer allowing successive discount of 20% and 25% on the marked price. If he suffers a loss of Rs. 140, then the cost price of the article is (in Rs.):

  1. 900

  2. 840

  3. 872

  4. 875

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let CP = x. Marked price = 1.4x. After 20% discount: 1.4x × 0.8 = 1.12x. After 25% discount: 1.12x × 0.75 = 0.84x. Loss = x - 0.84x = 0.16x = 140, so x = 140/0.16 = 875.