A shopkeeper marks his goods at 50% above the cost price. He allows a 20% discount on the marked price. If he also gives an additional cash discount of ₹200, and still makes a profit of 12% on the cost price, what is the cost price of the goods?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹2500.
Let the cost price be 100x.
MP = 150% of 100x = 150x
SP = MP × (100 - D)/100
⇒ 150x × 80/100 = 120x
Final SP = 120x - 200
Now, profit = 12%
So, SP = 112% of 100x = 112x
Given, 112x = 120x - 200
⇒ 8x = 200
⇒ x = 25
So, CP = 100 × 25 = 2500