A merchant marked the price of an article by increasing its production cost by 80%. Now he allows discount of Rs. 160 and gets a profit of Rs. 200 after selling it. The production cost is
- AOption (a)
Rs. 320
- BOption (b)
Rs. 360
- COption (c)
Rs. 575
- DOption (d)
Rs. 450
- EOption (e)
Rs. 580
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Correct answer
Rs. 450
Why this answer is correct
Solution:
Let the CP of the article is Rs. 100x
MP = 180/100 × 100x = 180x
Discount = Rs. 160
SP = MP - Discount
= 180x - 160 .............(i)
Also SP = CP + Profit
= 100x + 200 ...........(ii)
By equation (i) and (ii)
180x - 160 = 100x + 200
80x = 360
x = 36/8
CP of the article = 100x
= 100 × 36/8 = Rs. 450
Hence, option(4) is correct.