A ready-made garments shop in Delhi allows 20 percent discount on its garments and still makes a profit of 20 percent. Find the marked price of a dress which is bought by the shopkeeper for Rs. 400.

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Solution

C.P. of the dress = Rs. 400
Profit = $\frac{20}{100} \times R s .400 = R s . 80$
S.P. = C.P. + Profit
= Rs. 400+ Rs.80
= Rs. 480
Let M.P. of the dress = Rs. 100
Discount@ 20% = $\frac{20}{100} \times R s . 100 = R s . 20$
S.P. of the dress = M.P. - Discount
= Rs. 100 - Rs. 20
= Rs. 80
If S.P. of the dress is Rs. 80; then M.P. = Rs.100
If S.P. of the dress is Rs. 1 then M.P. = Rs $\frac{100}{80}$
If S.P. of the dress is Rs. 480 then M.P. = Rs $\frac{100}{80}$
= Rs. $\frac{100}{80} \times 480$
= Rs. $100 \times 6 = 600$
$∴$ M.P. of the dress = Rs. 600

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