A retailer marked a jacket 60% above its cost price. During an off-season clearance, he offered a flat discount of Rs. 1800 and still made a profit of 20%. What was the cost price of the jacket?
Show answer & explanation
Correct answer: D
Explanation
Marked Price = 1.6CP
Selling Price = 1.6CP − 1800
⇒ 1.6CP − 1800 = 1.2CP
⇒ 0.4CP = 1800
⇒ CP = 1800 / 0.4 = ₹4500