Question

A shopkeeper marks his goods at 60% above the cost price. He allows a discount of 25% on the marked price. If he also gives an additional cash discount of ₹150, and still makes a profit of 14% on the cost price, what is the cost price of the goods?

• A. ₹2000
• B. ₹2500
• C. ₹3000
• D. ₹3500

Answer 1

Answer:

B. ₹2500

Let the cost price be (x).

Marked Price

Goods are marked (60%) above cost price:

$\text{MP} = 1.6x$

After 25% discount

$\text{SP before cash discount} = 1.6x \times \frac{75}{100}$

= 1.2x

After additional cash discount of ₹150

$\text{Final SP} = 1.2x - 150$

Given that the final selling price gives a profit of (14%):

$\text{Final SP} = 1.14x$
So,

$1.2x - 150 = 1.14x$
$1.2x - 1.14x = 150$
$0.06x = 150$
$x = \frac{150}{0.06} = 2500$

Therefore, the cost price of the goods is:

= ₹2500