A shopkeeper sells an article at a discount of 12%. Had he given only a 5% discount, he would have earned ₹504 more as profit. If the cost price of the article is ₹3,000, then find the marked price.
Show answer & explanation
Correct answer: A
Explanation
Given:
Cost Price = ₹3000
First Discount = 12%
Second Discount = 5%
Profit Margin = ₹504
Formula:
Selling Price = Marked Price × (1 − Discount)
Let Marked Price = x
Selling Price in the first case
= x × (1 − 12/100) = 0.88x
Selling Price in the second case = x × (1 − 5/100) = 0.95x
Difference
0.95x − 0.88x = ₹504
0.07x = ₹504
x = 7200
Marked Price = ₹7200