Question

A shopkeeper allows 20% discount on the advertised prices of his goods and still makes a profit of 12% on his cost price. Calculate the advertised price of an article on which he gains Rs. 135.

• A. Rs. 1,123
  
• B. Rs. 1,395
• C. Rs. 1,575
• D. Rs. 1,722

Answer 1

Answer: (C)

Rs. 1,575

Let the advertised price or marked price be $Rsx$
Then, Selling Price after $20$ % discount $=Rs0.8x=\frac{4}{5}x$
Given, Profit % $=\frac{S.P-C.P.}{C.P.}\times 100=12$ %
$=>\frac{0.8x-C.P.}{C.P.}\times 100=12$
$=>0.8x-C.P.=0.12C.P.$
$=>1.12C.P.=0.8x$

$C.P.=\frac{0.8x}{1.12}=\frac{80x}{112}=\frac{20x}{28}=\frac{5}{7}x$
Given, $Gain=Rs135$
$=>S.P.-C.P.=Rs135$
$=>\frac{4}{5}x-\frac{5}{7}x=Rs135$
$=>x=Rs1,575$
So, advertised price $=Rs1,575$