A shopkeeper allows a discount of 40% on his articles and still makes a profit of 20%. How much cost price does shopkeeper pay for an article whose marked price is ₹ 2,400?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹1,200
Formula used:
Cost Price = Marked Price × (100 - Discount)/(100 + Profit)
Given,
The marked price is ₹ 2,400.
He gives a discount of 40% on his articles and still makes a profit of 20%.
Cost Price = 2400 × (100 - 40)/(100 + 20) = 2400 × 60/120 = ₹1200