A wholesaler marks up a batch of 100 identical clocks by 80% on cost and offers a trade discount of 25% to retailers. A retailer purchases all the clocks and spends Rs. 48,000. What is the cost price per clock for the wholesaler?
- AOption (a)
Rs. 355.56
- BOption (b)
Rs. 426.56
- COption (c)
Rs. 385.56
- DOption (d)
Rs. 435.56
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Correct answer
Rs. 355.56
Why this answer is correct
Shortcut Trick
Net profit % = 80 − 25 − (80 × 25) ÷ 100 = 35%
Selling Price (SP) of 1 clock = 48000 ÷ 100 = Rs. 480
Cost Price (CP) × 1.35 = 480 ⇒ CP = 480 ÷ 1.35
CP = 3200 ÷ 9 ≈ Rs. 355.56
∴ The correct answer is Rs. 355.56.
Alternate Method
Given:
Total clocks = 100
Total amount paid by retailer = Rs. 48,000
Markup % = 80%
Discount % = 25%
Formula Used:
SP = CP × (1 + Markup%/100) × (1 − Discount%/100)
CP = ? SP = 480 MP Markup: +80% Discount: −25% Net: +35%
Calculations:
⇒ SP of 1 clock = 48000 ÷ 100 = Rs. 480
⇒ 480 = CP × (1 + 80/100) × (1 − 25/100)
⇒ 480 = CP × 1.80 × 0.75
⇒ 480 = CP × 1.35
⇒ CP = 480 ÷ 1.35
⇒ CP = 48000 ÷ 135
⇒ CP = 3200 ÷ 9 ≈ 355.56
∴ The correct answer is Rs. 355.56.
Additional Information
Marked Price & Discount
Discount is always calculated on the Marked Price (MP). Final Selling Price = MP × (1 − Discount%/100).
Effective Profit %
When a markup% and a discount% are applied, Effective profit % = Markup% − Discount% − (Markup% × Discount%) ÷ 100.
Successive Discount
When two discounts d1% and d2% are given successively, the equivalent net discount = d1 + d2 − (d1 × d2) ÷ 100.