A shopkeeper marks a mobile phone 30% above its cost price. During a festival sale, he offers two successive discounts of 10% and 5% on the marked price. If his cost price is Rs. 12000, find the selling price of the mobile phone and the profit earned.
Show answer & explanation
Correct answer: C
Explanation
Given:
Cost Price (CP) = 12,000
Marked Price (MP) = 30% higher
Discounts = 10% and 5%
According to the formula:
MP = CP × (1 + 30/100)
SP = MP × 0.9 × 0.95
MP = 12,000 × 1.30 = 15,600
SP = 15,600 × 0.9 × 0.95
= 15,600 × 0.855
= 13,338
Profit = 13,338 − 12,000 = 1,338
The Selling Price is ₹13,338, and the profit is ₹1,338.