Question

A trader offers a discount of 20% on a product but still makes a profit of 10%. What is the marked price of the product if the cost price is Rs.8000?

• A. Rs.11000
• B. Rs.10000
• C. Rs.10500
• D. Rs.9000

Hint:

Use SP from profit first, then reverse the discount to find marked price.

Answer 1

The Correct Option is A

To find the marked price of the product, we need to use the given information and the relationship between cost price, selling price, discount, and marked price.

1. First, we know the trader offers a discount of 20% on the marked price. Let's denote the marked price as \(M\).
2. Therefore, the selling price (SP) can be calculated as: \(\text{Selling Price} = M - 0.2M = 0.8M\)
3. Next, we know that even after giving a 20% discount, the trader makes a profit of 10% on the cost price.
4. The cost price (CP) is given as Rs.8000, and the profit is 10%, which means: \(\text{Selling Price} = \text{Cost Price} + \text{Profit} = 8000 + \frac{10}{100} \times 8000\)
5. Calculating the profit: \(\text{Profit} = \frac{10}{100} \times 8000 = 800\)
6. Thus, the selling price (SP) is: \(\text{Selling Price} = 8000 + 800 = 8800\)
7. Now, equating the selling price expressions: \(0.8M = 8800\)
8. Solving for \(M\): \(M = \frac{8800}{0.8}\)
9. Finally, calculating: \(M = 11000\)

Therefore, the marked price of the product is Rs.11000.