An article is marked at ₹1000. A shop owner allows a discount of 20% and still gains 10%. What is the approximate cost price of the article?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹727.
SP = MP × (100 - D)/100
⇒ 1000 × 80/100 = 800
Profit = 10%
So, CP = SP × 100/(100 + P)
⇒ 800 × 100/110 = 727.27 ≈ 727