A renowned brand marked its goods at 40% above the cost price but allows a discount of 7.5% for UPI payments to the customers. What actual profit is made on a shirt, if a customer pays Rs1,813 to buy it using UPI?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs.413.
Let the cost price of the shirt be 100x.
Mark-up price = 140% of 100x = 140x
SP = MP × [(100 - D)/100]
⇒ 140x × [(100 - 7.5)/100]
⇒ 140x × 92.5/100 = 129.5x
Given, 129.5x = 1813
⇒ x = 1813/129.5 = 14
Now, CP = 100x = 1400
Profit = 1813 - 1400
⇒ 413