Question:
A shopkeeper offers 10% off-season discount to the customers and still makes a profit of 26%. What is the cost price for the shopkeeper on a pair of shoes marked at Rs 1120?
Solution:
Given,
MP of the pair of shoes $=$ Rs. 1120
Discount $=10 \%$
So, SP $=$ MP $\left(\frac{100-\text { Discount } \%}{100}\right)$
$=1120 \times \frac{90}{100}$
$=$ Rs. 1008
Now,
Profit $=26 \%$
$\mathrm{SP}=$ Rs. 1008
Therefore, $\mathrm{CP}=\left(\frac{100 \times \mathrm{SP}}{100+\text { Profit\% }}\right)$
Cost price $=\left(\frac{100 \times 1008}{100+26}\right)$
$=$ Rs. 800
The $\cos t$ price of the pair of shoes will be Rs. 800 .