A lady shopkeeper allows her customers 10% discount on the marked price of the goods and still gets a profit of 25%.
Question:
A lady shopkeeper allows her customers 10% discount on the marked price of the goods and still gets a profit of 25%. What is the cost price of a fan for her marked at Rs 1250?
Solution:
Given,
MP of the fan $=$ Rs. 1250
Discount $=10 \%$
So, Discount $=10 \%$ of 1250
$=0.10 \times 1250$
$=$ Rs. 125
Since SP $=$ MP $-$ Discount,
$S \mathrm{P}=$ Rs. $(1250-125)$
$=$ Rs. 1125
Now,
$S P$ of the fan $=$ Rs. 1125
Profit $=25 \%$
$\mathrm{CP}=\left[\frac{100}{(100+\text { Profit } \%)} \times \mathrm{SP}\right]$
$=\left[\frac{100}{125}\right] 1125$
$=$ Rs. 900
Thus, the cost price of the fan is Rs. 900 .