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 gains Rs. $135$.

Answer 1

Lets cost price be $X$
$12\%$ of $X$ (profit ) $=135$ ....Given
Therefor $X=$ $\frac{135\times 100}{12}=$ Rs. $1125$
$\text{C.P.}$ $=$ Rs. $1125$
$\text{S.P.}$ $=1125+135=1260$
$\text{S.P.}$ $=1-20\%$ of $\text{M.P.}$
$1260=$ $\frac{4}{5}$ of $\text{M.P.}$
$\text{M.P.}$ $=$ $\frac{1260\times 5}{4}=1575$