# 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

- 320
- 400
- 360
- 420

**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.