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Understanding Cost per Unit in Every Day Life Situation

A shopkeeper ...

Question

A shopkeeper marks the price of cold cream at ₹ 160. Find the cost price if after allowing a discount of 10% he still makes a profit of 20%.

A

₹ 140

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B

₹ 195

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C

₹ 120

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D

₹ 155

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Solution

The correct option is C
₹ 120

If a discount of 10% is given on the MP of ₹ 160 , Then SP = ₹ 144

SP = ₹ 144

Let CP be ₹ x

x + $\frac{20 x}{100}$ = 144

120 x = 14400

x = $\frac{14400}{120}$ = ₹ 120

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