Question

Jasmine allows 4% discount on the marked price of her goods and still earns a profit of 20%. What is the cost price of a shirt for her marked at Rs. 850?

Answer 1

Answer:

Cost price of a shirt is Rs 680

Step-by-step explanation:

Solution:

Given,

Gain = 20%

MP of the shirt = Rs 850

Discount = 4%

Discount allowed on the marked price of goods = 4/100 × 850

= Rs 34

So, SP of the shirt = (850 – 34) = Rs 816

By using the formula,

CP = 100/(100 + gain%) × SP

= 100/(100 + 20) × 816

= 100/120 × 816

= Rs 680

∴ Cost price of a shirt is Rs 680

Answer 2

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