A shopkeeper sells an item for ₹492 after allowing 18% discount on its marked price. Had he NOT allowed any discount, he would have earned a profit of 20% on the cost price. What is the cost price of the item ?
Let the marked price of the item = M
Discount = 18%
Selling price of the item = ₹492
$$\Rightarrow$$ $$\frac{82}{100}$$M = 492
$$\Rightarrow$$ M = ₹600
Let the cost price = C
If the Selling price is ₹600 the profit is 20%
$$\Rightarrow$$ $$\frac{120}{100}$$C = 600
$$\Rightarrow$$ C = ₹500
$$\therefore\ $$Cost price of the item = ₹500
Hence, the correct answer is Option A
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