A retailer marks an article 30% above its cost price. During a clearance sale, he gives two successive discounts of 15% and 10% on the marked price. If the final selling price is Rs 11934, find the cost price of the article.
Show answer & explanation
Correct answer: A
Explanation
Given:
Marked Price = 130% of CP
Successive Discounts = 15% and 10%
Final Selling Price = 11934
According to the formula:
SP = MP × (85/100) × (90/100)
MP = CP × (130/100)
SP = CP × (130/100) × (85/100) × (90/100)
= CP × (130 × 85 × 90) / 100000
= CP × (994500) / 100000
= CP × 9.945
11934 = CP × 0.9945
CP = 11934 / 0.9945 = ₹12000