After allowing a discount of 64%, the value of a water cooler is ₹6,480. If no discount is allowed, then the shopkeeper gains 20%. Find the cost price (in ₹) of the water cooler
- AOption (a)
15,000
- BOption (b)
14,998
- COption (c)
14,997
- DOption (d)
14,999
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Correct answer
15,000
Why this answer is correct
Shortcut Trick
SP = 36% of MP ⇒ 6,480 = 0.36 × MP ⇒ MP = 18,000.
If no discount is allowed, SP = MP = 18,000.
At this SP, profit is 20%, so CP × 1.2 = 18,000.
CP = 18,000 ÷ 1.2 = 15,000.
∴ The correct answer is ₹15,000.
Alternate Method
Given: Discount = 64%, SP = ₹6,480, Profit (at MP) = 20%.
Formulas: SP = MP × (100 − D%) ÷ 100 | CP = MP × 100 ÷ (100 + P%)
⇒ Let Marked Price be MP.
⇒ Selling Price (SP) = MP × (100 − 64) ÷ 100 = 0.36 × MP.
⇒ 6,480 = 0.36 × MP ⇒ MP = 6,480 ÷ 0.36 = 18,000.
⇒ If no discount is allowed, then New SP = MP = 18,000.
⇒ Given Profit = 20% when SP = 18,000.
⇒ Cost Price (CP) = 18,000 × (100 ÷ 120) = 18,000 ÷ 1.2 = 15,000.
∴ The correct answer is ₹15,000.
Additional Information
Relation between CP and MP
The direct ratio of CP to MP is given by CP : MP = (100 − Discount%) : (100 + Profit%).
Marked Price and Discount
Discount is always calculated on the Marked Price (MP), and if no discount is offered, the Marked Price becomes the Selling Price.
