2021 · Q76
In a stock clearance sale, a shopkeeper gives 40% off on all his items. He incurs a loss of 25% by selling an item of marked price 2,000. Which one of the following is the cost price of this item?
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- A1,800
- B1,200
- C1,600
- D1,400
Explanation
After a 40% discount, the selling price of the 2000-rupee item is 2000 x 0.6 = 1200. This sale price represents a 25% loss on cost price, so cost price = 1200 / 0.75 = 1600. The other options do not satisfy both the discount and the loss conditions. Hence the cost price is 1600.