A cycle shop allows a discount of 25% on the marked price and earns a profit of 20% on the cost price. Its marked price on which shop earns ₹ 40 is:
₹320
Let marked price be ₹ x
∴ selling price (S.P) = x−25100x
SP = ₹ 34x
Let cost price (CP) = ₹ y
Profit =20%
∴20100y = 40
⇒y = 200
∴ selling price (SP)= 200+40 = ₹240
∴34x=240⇒x=240×43= ₹320