On an item, a shopkeeper offers a discount of 7.5% on the marked price and a cashback of ₹10 per item. He still earns ₹5 per item. If ₹x is the marked price of each item, then, what is the cost price (in ₹) of each item?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 0.925x − 15.
Let the marked price be x
First, calculate the selling price (SP) after applying the 7.5% discount to the marked price (MP):
⇒ S.P. = x - (7.5/100) × x
⇒ S.P. = (100 - 7.5)% × x
⇒ S.P. = 92.5% × x
Now, since the shopkeeper still earns ₹5 per item,
S.P. - ₹10 = Cost Price (C.P.) + ₹5
Now, CP:-
⇒ CP = 0.925 × x - ₹10 - ₹5
⇒ CP = 0.925 × x - ₹15
⇒ C.P. = 0.925x - 15