Multiple choice

A Dealer offers a discount of 10% on the marked price of an article and still makes a profit of 20%. If its marked price is Rs 800, then the cost price of the article is

  1. Rs 900

  2. Rs 800

  3. Rs 700

  4. Rs 600
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Selling price after 10% discount = 90% of 800 = 720. This includes 20% profit, so 720 = 120% of CP. CP = 720/1.2 = 600. Option A would mean SP is 80% of CP (loss), Option B would mean SP = 90% of CP (loss), Option C would mean SP > CP (profit > 20%).

Keep practicing — related questions