Question

A cycle shop allows a discount of $25\%$ on the marked price and earns a profit of $20\%$ on the cost price. What is its marked price on which shop earns ₹ 40?

Answer 1

Let marked price be ₹ $x$
$\therefore$ selling price (S.P) = $x-\frac{25}{100}x$
SP = ₹ $\frac{3}{4}x$
Let cost price (CP) = ₹ y
Profit $=20\%$
$\therefore \frac{20}{100}y$ = 40
$\Rightarrow y$ = 200
$\therefore$ selling price (SP)= 200+40 = ₹240
$\therefore \frac{3}{4}x=240\Rightarrow x=\frac{240\times 4}{3}=$ ₹320