A shopkeeper sells an item for ₹1,638 after offering a discount of 16% on its list price. Had he not offered any discount, he would have earned a profit of 30%. What is the cost price (in ₹) of the article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e.1,500.
The selling price of the item = Rs. 1638
Discount = 16%
SP = Marked Price(100 - Discount)%
SP = Cost Price(100 + profit)%
According to the question -
1638 = MP(100 - 16)%
1638 = 84% of MP
100% of MP = (1638/84) × 100 = Rs. 1950
Now, If he would sell the item at MP then there is a profit of 30%.
CP(100 + 30)% = 1950
130% of CP = 1950
CP = 1950 × (100/130) = Rs. 1500