Question

A dealer marks his goods $35\%$ above the cost price and then allows a $15\%$ discount on it. What is the cost price of an article on which he gains $\text{Rs}88.50$?

• A. $\text{Rs.}600$
• B. $\text{Rs.}633$
• C. $\text{Rs.}720$
  
• D. $\text{Rs.}853$
  

Answer 1

The correct option is A $\text{Rs.}600$

Let the original cost be $x$
After marking up the goods at $35\%$, the price becomes $x+\frac{35x}{100}=\text{Rs}1.35x$
After $15\%$ discount, the selling price becomes $0.85$ of $1.35x=0.85\times 1.35=\text{Rs}1.1475x$
Given, Gain $=\text{Rs}88.50$
$⟹S.P-C.P.=88.50$
$⟹1.1475x-x=88.50$

$⟹x=\frac{88.50}{0.1475}$
$⟹x=600$
So, C.P $=\text{Rs}600$