Question

A trader marks an article 40% above cost price and gives two successive discounts of 10% and 5%. If the selling price is Rs.3591, the cost price of the article is

• A. Rs. 3000
• B. Rs. 4000
• C. Rs. 2000
• D. Rs. 5000

Hint:

To estimate, calculate the net profit or loss percentage:
A markup of \(+40\%\) followed by discounts of \(-10\%\) and \(-5\%\) gives a net multiplier of \(1.4 \times 0.9 \times 0.95 = 1.197\).
This represents a \(19.7\%\) net profit.
Since \(SP = 3591\), the CP must be around \(3591 \div 1.2 = 3000\), which matches Option (A) perfectly.

Answer 1

The Correct Option is A

Step 1: Find marked price in terms of cost price.
Marked price (MP) = CP x 1.40 (40% above cost price).
Step 2: Apply the two successive discounts.
After 10% discount: 1.40 x 0.90 x CP = 1.26 x CP. After 5% discount: 1.26 x 0.95 x CP = 1.197 x CP.
Step 3: Solve for cost price.
1.197 x CP = 3591, so CP = 3591 / 1.197 = Rs. 3000.
\[ \boxed{3000} \]