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Question : A shopkeeper sold sarees at Rs. 266 each after giving a 5% discount on the labelled price. Had he not given the discount, he would have earned a profit of 12% on the cost price. What was the cost price of each saree?

Option 1: Rs. 280

Option 2: Rs. 260

Option 3: Rs. 240

Option 4: Rs. 250


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Rs. 250


Solution : Let the labelled price be Rs. $x$ and the cost price be Rs. $y$.
The shopkeeper sold the sarees at Rs. 266 each after giving a 5% discount on the labelled price.
$x - 0.05x = 266$
$⇒0.95L = 266$
$⇒x = \frac{266}{0.95} = \mathrm{Rs.}\;280$
If the shopkeeper had not given the discount, he would have sold the saree at the labelled price, which would have been a 12% profit on the cost price.
$y + 0.12y = x$
$⇒1.12y = 280$
$⇒y = \frac{280}{1.12} = \mathrm{Rs.}\;250$
Hence, the correct answer is Rs. 250.

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