Question

Sujatha marks an article 40% above the cost price. She sells it offering two successive discounts of 20% and 25% on the marked price and she suffers a loss of Rs. 83.20. If she sells the article at 75% of the marked price, (without offering any discount), then her profit is:
1. Rs. 42
2. Rs. 32
3. Rs. 26
4. Rs. 36

Answer 1

Correct Answer - Option 3 : Rs. 26

Formula used:

Loss = Selling Price - Cost Price

Profit = Cost Price - Selling Price

Successive discount = X + Y - (XY)/100

Where,

X = First discount

Y = Second discount

Calculation:

Let the cost price be Rs.5x

Then marked price = 7x (40% above the cost price)

Successive discount = X + Y - (XY)/100

X = 20%, Y = 25%

⇒ 20 + 25 - 500/100

⇒ 45 - 5 = 40%

Initial selling Price = 7x × 60/100 = 21x/5 = 4.2x

According to the question:

Loss = 5x - 4.2x = 0.8x

⇒ 0.8x = 83.2

⇒ x = 83.2/0.8 = 10.4

Now, New Selling Price = 75% of Marked Price

⇒ SP = 75/100 × 7x = 21x/4 = 5.25x

Profit = 5.25 x - 5x = 0.25x

Profit = 0.25 × 10.4 = Rs. 26

∴ Her profit is Rs. 26.