A merchant marked the price of an article by increasing its production cost by 40%. Now he allows 20%discount and gets a profit of Rs. 48 after selling it. The production cost is
Show answer & explanation
Correct answer: C
Explanation
The correct option is 3.
let the production cost(PC) be rs 100
marked price (MP) = 140% production cost { production cost = rs 100}
MP = rs 140
discount = 20%
discount = 
× 140 {∵ discount = 
× MP}
discount = rs 28
selling price (SP) = rs 112
profit = SP - PC = 112 -100 = 12
here Rs 12 is when PC = rs 100
now when profit = rs 48 { ∵ 12 × 4 = 48}
PC = 4 × 100 = rs 400