Profit of Ravindra while selling a book to Meeta is Rs. 68. Despite a discount of 15% on the book, Ravindra managed to get a 10% profit. What must be the list price of the book?
Show answer & explanation
Correct answer: A
Explanation
Given:
Profit = ₹68
Discount = 15%
Profit percentage = 10%
By the formula:
SP = CP × (1 + Profit/100)
SP = MP × (1 − Discount/100)
Let cost price = CP
SP = 1.10 × CP
Profit = SP − CP = ₹68
1.10 CP − CP = ₹68
0.10 CP = ₹68
CP = ₹680
Now SP = MP × 0.85 (because of 15% discount)
SP = 1.10 × 680 = ₹748
MP × 0.85 = ₹748
MP = ₹748 ÷ 0.85
MP = ₹880
Listed price of the book = ₹880