Question 122

A manufacturer marked an article at Rs. 50 and sold it allowing 20% discount. If his profit was 25%, then the cost price of the article was

Solution

Given: Marked Price = 50
           Discount = 20%of 50 = $$50\times0.5$$ = 10
          Hence sold price = 50 - 10 = 40
          Let's say cost price is $$x$$
          Profit = 25% of x (Always remember profit and loss applicable only on cost price) = $$\frac{x}{4}$$
          Hence sold price will be $$x$$ + $$\frac{x}{4}$$ = $$\frac{5x}{4}$$
          or $$\frac{5x}{4}$$ = 40
                            $$x$$ = 32

          


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