Question

A trader marks up the price of a product by $50$%. If the discount is increased from $10$% to $20$%, his profit comes down by Rs. $105$. What is the cost price of the product?

• A. Rs. $600$
• B. Rs. $700$
• C. Rs. $750$
• D. Rs. $800$

Answer 1

The correct option is B Rs. $700$

Let the cost price be $x$.

As trader marks up the price of a product by $50\%$.

$MP=150\%\times x=1.5x$

At $10\%$ discount

$SP=90\%\times 1.5x=1.35x⟹ptofi{t}_1=1.35x-x=0.35$

At $20\%$ discount

$SP=80\%\times 1.5x=1.2x⟹ptofi{t}_2=1.2x-x=0.2x$

Given that, $0.35x-0.2x=105⟹x=700$

Hence, $CP=Rs.700$