A dealer marks an article 40% above the cost price and sells it to a customer, allowing two successive discounts of 20% and 25% on the marked price. If he suffers a loss of Rs.140, then the cost price (in Rs) of the article is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 875
Explanation:
Let the cost price be x.
Marked price = x × 140/100 = 1.4x
Selling price = 1.4x × 80/100 × 75/100 = 0.84x
Loss = 140
x - 0.84x = 140
0.16x = 140
x = Rs.875
∴ Cost price (in Rs) of the article is Rs.875.