A shopkeeper marked an item 50% above its cost price. He then offered two successive discounts of 10% and 20% to a customer, if he made a profit of ₹80, at what price did he sell the item to that customer?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1080.
Let CP = x
Marked price = 1.5x
After 10% discount: = 0.9 × 1.5x
After 20% discount = 0.8 × 0.9 × 1.5x = 1.08x
So, SP = 1.08x
Profit = 1.08x − x = 0.08x
Given profit = 80
⇒ 0.08x = 80
⇒ x = 1000
SP = 1.08 × 1000 = ₹1080