On the tag price, a seller offers a 10% discount and a cashback of ₹250. He still earns 10% profit. If the cost price is ₹1,200, then the tag price (rounded off to 2 decimal places) is ₹______.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 1744.44.
Given that
Discount offered = 10% on tag price
Cashback offered = 250
Discount % = (Marked Price - Selling Price)/Marked Price × 100
Profit earned = 10% on C.P = 0.1 × 1200 = 120
Let the tag price be x
Net selling price = 0.9% × x - 250
Formula used
S.P - C.P = profit
According to the question
0.9% × x - 250 -1200 = 120
Solving for x we get
x = 1744.44
Hence, the tag price (rounded off to 2 decimal places) is ₹1744.44.