Trader marks an item 50% above cost price and offers a 20% discount on the marked price. If the customer pays ₹720, what is the cost price of the item?
Show answer & explanation
Correct answer: C
Explanation
Let the cost price = ₹100
Marked price = 50% above the cost price
= ₹150
SP = 150 × 80/100 = ₹120
This means that for a cost price of ₹100, the selling price is ₹120.
Now, the actual selling price is ₹720.
120 units = 720
1 unit = 6
100 units = 600