Question

A trader marked a watch 40% above the cost price and then gave a discount of 10% He made a net profit of Rs 468 after paying a tax of 10% on the gross profit What is the cost price of the watch?

• A. Rs 1,200
• B. Rs 1,800
• C. Rs 2,000
• D. Rs 2,340

Answer 1

The correct option is C Rs 2,000

Let the cost price of watch $=$Rs$100$

Marker price $=100+40=$Rs$140$

Then selling price =$\frac{90}{100}\times 140=126$ Rs

So gain$=126-100=26$ Rs

Net gain$=26-10\%$ of $26=26\times 0.9=23.4$

Thus for the cost price of Rs $100$ net gain is Rs $23.4$

According to the given condition,

cost price =$\frac{468}{23.4}\times 100=$ Rs $2000$