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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
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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