Question : The marked price of an article is Rs. 1200. A discount of 40% is given. If there is a loss of 20%, then what is the cost price of the article?
Option 1: Rs. 780
Option 2: Rs. 850
Option 3: Rs. 1020
Option 4: Rs. 900
Correct Answer: Rs. 900
Solution :
Discount =
Let's denote the cost price of the article as
The marked price (MP) is Rs. 1200, and a discount of 40% is given,
So, Discount =
Selling Price (SP) = Marked Price − Discount
⇒ SP = 1200 − 480 = Rs. 720
Since there is a loss of 20%
Loss =
⇒ Loss =
SP = Cost Price − Loss
⇒ 720 = C − 0.2C
⇒ 720 = 0.8C
⇒
⇒
So, the cost price of the article is Rs. 900.
Hence, the correct answer is Rs. 900.