Anil offers his customer a discount of 15% on a T-shirt and he still makes a profit of 25%. What is the actual cost of the T-shirt marked ₹500?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹340
Given:
Marked price = 500
Profit = 25%
Discount = 15%
Formula used:
Selling price = Cost price + Cost price × profit%
Selling price = marked price - marked price × discount%
Calculations:
Selling price after a discount of 15% = 500 × 0.85 = 425
Cost price when the profit is 25%
⇒ Cost price + 0.25 cost price = 425
⇒ Cost price = 425/1.25 = 340