Namitha gives a 20% discount on all things in her shop and yet makes a profit of 12%. What is the cost price of an item with marked price of Rs.280?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.200.
Profit = 12%
Discount = 20%
Marked Price(M.P.) = Rs. 280
Marked Price/Cost Price = (100 + Profit%)/(100 - Discount%)
MP/CP = (100 + Profit%)/(100 - Discount%)
280/CP = (100 + 12)/(100 - 20)
280/CP = (112)/(80)
280/CP = 7/5
CP = 5/7 × 280 = Rs. 200