Amit sold an article for Rs 369.60 after allowing 12% discount on the market price. Had he not allowed any discount he would have earned a profit of 20%. What is the cost price of the article?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs 350
Concept
Basic Calculation
Application
Selling price of article = Rs. 369.60
It was sold after a discount of 12%. means it was sold at 88%
Therefore, Marked Price = 369.60 / 88 x 100
= Rs. 420
If no discount is allowed, it means Marked Price equals Selling Price.
Now, selling price = Rs 420.
It was sold at 20% profit.
Therefore, Cost Price = 420 / 120 x 100 = Rs. 350