A dealer sets the marked price of a television 20% higher than its cost price. If he gives a discount of 15% and makes a profit of ₹300, what is the cost price of the television?
- AOption (a)
₹10,000
- BOption (b)
₹12,500
- COption (c)
₹15,000
- DOption (d)
₹18,000
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Correct answer
₹15,000
Why this answer is correct
Shortcut Trick
Let Cost Price (CP) = 100%.
Marked Price (MP) = 100% + 20% = 120%.
Selling Price (SP) = 120% − (15% of 120%) = 120% − 18% = 102%.
Profit = SP − CP = 102% − 100% = 2%.
Given, 2% = ₹300 ⇒ 100% = ₹15,000.
∴ The correct answer is ₹15,000.
Alternate Method
Given:
Markup = 20%
Discount = 15%
Profit = ₹300
Formula Used:
MP = CP × (100 + Markup%) ÷ 100
SP = MP × (100 − Discount%) ÷ 100
Profit = SP − CP
CP = 100xMP = 120xSP = 102x+20% Markup-15% DiscountProfit = 2x = ₹300
Calculations:
⇒ Let the Cost Price (CP) be 100x.
⇒ Marked Price (MP) = 100x × (100 + 20) ÷ 100 = 120x
⇒ Selling Price (SP) = 120x × (100 − 15) ÷ 100 = 120x × 85 ÷ 100 = 102x
⇒ Profit = 102x − 100x = 2x
⇒ 2x = 300
⇒ x = 150
⇒ CP = 100x = 100 × 150 = 15000
∴ The correct answer is ₹15,000.
Additional Information
Marked Price & Discount
Discount is always calculated on the Marked Price (MP). SP = MP × (100 − D%) ÷ 100.
Successive Discounts
If two successive discounts of a% and b% are given, the single equivalent discount is (a + b − a×b ÷ 100)%.
Relation between CP and MP
CP ÷ MP = (100 − Discount%) ÷ (100 + Profit%). This is a direct shortcut formula to find CP or MP without having to calculate SP.