Find The Cost of Production (in ₹) of the Article :

A dealer fixed the price of an article 40% above the cost of production. While selling it he allows a discount of 20% and makes a profit of ₹48. The cost of production (in ₹) of the article is

  1. 320
  2. 400
  3.  360
  4. 420
Anurag Mishra Professor Asked on 26th October 2015 in Maths.
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1 Answer(s)

Answer is (2): 400

Let the cost price of an article = Rs. 100

A dealer fixed the price of an article 40% above the cost price.
Then, the selling price of an article = 100 +100 x 40/100
  = 100 + 40
 = Rs. 140

He makes discount 20%,
Then, the selling price of an article = 140 – 140 x 20/100
 = 140 – 28
 = Rs. 112

Then, the percentage of profit = 112 – 100
 = 12%
profit = Rs. 48           (Given)

So, the cost price of an article = 48 x 100/12
 = 4 x 100
 = Rs. 400

Hence, the answer is (2) Rs. 400.

Monis Rasool Professor Answered on 28th October 2015.
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