A retailer marked a product 60% above its cost price. He provided two successive discounts of 25% and 10%. if he earned a profit of 160, what was the cost price of the product?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹2000.
Let CP = x
MP = 1.6x
After 25% and 10% discounts: SP = 1.6x × (75/100) × (90/100) = 1.08x
Profit = 1.08x – x = 0.08x
0.08x = 160
⇒ x = 160/0.08 = 2000