Multiple choice

A trader marked a watch 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 watch?

  1. Rs 1,200

  2. Rs 1,800

  3. Rs 2,000

  4. Rs 2,340
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let CP = 100x. MP = 140x. SP = 140x * 0.9 = 126x. Gross profit = 26x. Tax = 10% of 26x = 2.6x. Net profit = 26x - 2.6x = 23.4x. 23.4x = 468. x = 20. CP = 100 * 20 = 2000.

AI explanation

Let the cost price be C. The marked price is 1.40 times C, and after a 10 percent discount, the selling price is 1.26 times C. The gross profit is the selling price minus the cost price, which is 0.26 times C. A 10 percent tax on this gross profit leaves the trader with 90 percent of 0.26 C, so 0.234 times C equals 468. Solving for C, the cost price of the watch is Rs 2,000.

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