A manufacturer marked an item ₹ 1,400 and allowed 25% discount to a retailer, who sold it by earning 12% profit. At what price (in ₹) did the retailer sell the item?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 1,176.
Formula used:
Selling price = Marked price - (Marked price × Discount/100)
Selling price = Cost price + Cost price × Gain%
Calculations:
Cost price when discount is 25% = 1400 × 75/100 = 1050
Selling price when profit is 12% = 1050 × 112/100 = 1176
Hence, Retailer sold the item for 1176