Question

A shopkeeper marks an article 25% above the cost price and allows a discount of 10%. If the cost price of the article is ₹800, the selling price is:

• A. ₹850
• B. ₹900
• C. ₹920
• D. ₹950

Hint:

You can use the net percentage change shortcut formula for successions! The net profit percentage is given by: $x - y - \frac{xy}{100}$, where $x$ is markup and $y$ is discount. $$\text{Net Profit \%} = 25 - 10 - \frac{25 \times 10}{100} = 15 - 2.5 = 12.5\%$$ Now, simply find the Selling Price directly: $\text{SP} = 800 \times 112.5\% = 800 \times 1.125 = \text{₹}900$.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
This problem deals with the concepts of Cost Price (CP), Marked Price (MP), Selling Price (SP), Markup Percentage, and Discount Percentage. The shopkeeper increases the price from the cost price to determine the marked price, and then applies a reduction (discount) on this marked price to find the final selling price.

Step 2: Key Formula or Approach:
1. $\text{Marked Price (MP)} = \text{Cost Price (CP)} \times \left(1 + \frac{\text{Markup \%}}{100}\right)$ 2. $\text{Selling Price (SP)} = \text{Marked Price (MP)} \times \left(1 - \frac{\text{Discount \%}}{100}\right)$

Step 3: Detailed Explanation:
Given values from the problem: $\text{Cost Price (CP)} = \text{₹}800$ $\text{Markup Percentage} = 25\%$ $\text{Discount Percentage} = 10\%$ First, calculate the Marked Price (MP) by applying the 25% markup on the Cost Price: \[ \text{MP} = 800 + (25\% \text{ of } 800) \] \[ \text{MP} = 800 + \left(\frac{25}{100} \times 800\right) = 800 + 200 = \text{₹}1000 \] Next, calculate the Selling Price (SP) by offering a 10% discount on the calculated Marked Price: \[ \text{Discount Amount} = 10\% \text{ of } 1000 = \frac{10}{100} \times 1000 = \text{₹}100 \] \[ \text{SP} = \text{MP} - \text{Discount Amount} \] \[ \text{SP} = 1000 - 100 = \text{₹}900 \]

Step 4: Final Answer:
The selling price of the article is ₹900.