Calculate the Marked Price (MP)

Successive discounts of 86% and 85% mean the customer pays 14% of the original MP, and then 15% of that remaining value. The equation is $MP \times 0.14 \times 0.15 = 287.7$.

$MP = \frac{287.7}{0.14 \times 0.15} = \frac{287.7}{0.021} = 13700$

Relate Marked Price to Cost Price

If no discount is given, the selling price would be equal to the marked price. We are told this yields a 37% profit. So, $MP = CP \times 1.37$.

$CP = \frac{MP}{1.37} = \frac{13700}{1.37}$

Calculate the final Cost Price

Dividing the MP of 13700 by 1.37 gives the final result for the cost price of the item.

$CP = 10000$