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A retailer would have made a profit of 18% if he had sold an article at its marked price. If the marked price of the article is ₹826, then the cost price of the article is:
₹800
₹750
₹700
₹650
₹700
Use the relation between Cost Price and Marked Price when sold at marked price without discount: MP=CP×100118. Solve for CP=118826×100=700.
Profit percentage if sold at marked price = 18%, Marked price of the article (MP) = ₹826
MP=CP×(1+100Profit%)
Use the relation between Cost Price and Marked Price when sold at marked price without discount: MP=CP×100118. Solve for CP=118826×100=700.
Applying a discount when the problem explicitly states that the retailer would have made an 18% profit if sold at the marked price (meaning no discount is given).
Step 1: Understand the Condition
Since the article is sold at its marked price without any discount, the selling price equals the marked price (SP=MP). The profit made is 18%.
SP=MP=826
Step 2: Relate Cost Price and Marked Price
The formula connecting Cost Price (CP) and Selling Price (SP) with profit percentage is given by SP=CP×(1+100Profit%).
826=CP×(1+10018)
Step 3: Solve for Cost Price
Simplify the expression and solve for CP: 826=CP×1.18, which gives CP=1.18826=700.
CP=1.18826=700
C is correct because the cost price of the article is calculated as ₹700 using the relation between marked price and profit percentage.
In problems where marked price equals selling price, profit is calculated directly on the cost price relative to the marked price value.