Question

A merchant sold an item for $\text{Rs.}1200$ to earn a profit of $50\%$ over its cost price. what could the cost price be?

• A. $\text{Rs}55$
• B. $\text{Rs}607$
• C. $\text{Rs}800$
• D. $\text{Rs}1809$

Answer 1

The correct option is C $\text{Rs}800$

$\Rightarrow$ The selling price of an item $=Rs.1200$

$\Rightarrow$ Profit $=50\%$

Let the cost price be $Rs.x$

$\Rightarrow$ Profit $=x\times \frac{50}{100}=\frac{x}{2}$

$\Rightarrow$ Selling price of an item $=x+\frac{x}{2}=\frac{3x}{2}$ $[\because$ selling price $=$ cost price $+$ profit $]$

Now,

$\Rightarrow$ $\frac{3x}{2}=1200$

$\Rightarrow$ $3x=2400$

$\Rightarrow$ $x=800$

$\Rightarrow$ The required cost price is $Rs.800$