To clear a stock of items, a seller gives an 8% discount on the marked price. He spends ₹x on the promotion of the discount offer. His total cost of the items is ₹2,50,000 and the marked price is 10% more than the cost price. Finally, he earns no profit or no loss. What is the value of x?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 3000.
Let the Cost Price (CP) = ₹100
Then Marked Price (MP) = ₹100 + 20% of 100 = ₹120
Discount = 10% of ₹120 = ₹12
Selling Price (SP) = ₹120 − ₹12 = ₹108
Profit = SP − CP = ₹108 − ₹100 = ₹8
Profit % =
Total cost price = ₹2,50,000
⇒ Total Marked Price = ₹2,50,000 × 1.10 = ₹2,75,000
Discount = 8%
⇒ Selling Price = 92% of Marked Price = ₹ 2,75,000 × 0.92 = ₹ 2,53,000
Total Cost + Promotional Expense (x) = Total Selling Price
⇒ 2,50,000 + x = 2,53,000
⇒ x = 2,53,000 − 2,50,000 = ₹ 3,000