A shopkeeper sells a notebook that has a marked price of ₹80 at a discount of 8% and gives a pen costing ₹8.60 free with each notebook. Even then he makes a profit of 17%. Find the cost price of each note book correct to two places of decimals.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹70.26 .
Marked price = 80
Discount = 8% → Selling price = 80 - 6.4 = 73.6
Cost of free pen = 8.6
Total effective selling price = 73.6 + 8.6 = 82.2
Profit = 17% → Selling price = 1.17 × Cost price
82.2 = 1.17 × Cost price
Cost price = 82.2 ÷ 1.17 = 70.26