Question 74

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 ?

Solution

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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