An article is marked at ₹800. A shop owner allows a discount of 12% and still gains 8%. What is the approximate cost price of the article?
- AOption (a)
₹640
- BOption (b)
₹652
- COption (c)
₹660
- DOption (d)
₹680
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Correct answer
₹652
Why this answer is correct
Shortcut Trick
There is a direct ratio relation between Cost Price and Marked Price:
CP ÷ MP = (100 − Discount%) ÷ (100 + Profit%)
⇒ CP ÷ 800 = (100 − 12) ÷ (100 + 8)
⇒ CP = 800 × (88 ÷ 108)
⇒ CP = 17600 ÷ 27 ≈ 651.85
∴ The correct answer is ₹652.
Alternate Method
CP = ?
SP = 704
MP = 800
- 8%
− 12%
Finding CP from SP and Profit %
Given:
⇒ Marked Price (MP) = ₹800
⇒ Discount = 12%
⇒ Profit = 8%
Calculations:
⇒ Selling Price (SP) = MP × (100 − Discount%) ÷ 100
⇒ SP = 800 × (100 − 12) ÷ 100
⇒ SP = 800 × (88 ÷ 100) = ₹704
⇒ SP = CP × (100 + Profit%) ÷ 100
⇒ 704 = CP × (100 + 8) ÷ 100
⇒ 704 = CP × (108 ÷ 100)
⇒ CP = (704 × 100) ÷ 108
⇒ CP = 70400 ÷ 108 ≈ 651.85
∴ The correct answer is ₹652.
Additional Information
Marked Price & Discount
Discount is always calculated on the Marked Price. Formula: SP = MP − Discount.
Direct CP & MP Relation
A very useful formula directly connects Cost Price and Marked Price: CP/MP = (100 − D%) ÷ (100 + P%).
Successive Discount
For two successive discounts of a% and b%, the effective single discount is calculated as: a + b − (a × b) ÷ 100 %.