The ratio of cost price (CP) and marked price (MP) of an article is 4 : 7. A discount of 20% is given on MP and the shopkeeper made a profit of ₹ 80. Find the CP of the article.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ₹ 200.
Given that
The ratio of cost price (CP) and marked price (MP) of an article = 4 : 7
A discount of 20% is given on MP
Profit = ₹ 80
Let the cost price and marked price of the article be 4x and 7x respectively
According to the question
⇒ S.P. = 7x × 80/100 = 5.6x
⇒ Profit = S.P. - C.P.
⇒ 80 = 5.6x - 4x = 1.6x
⇒ x = 80/1.6 = 50
Hence, the C.P. of the article = 4x = 4 × 50 = ₹200