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By selling an article at 20% discount off the marked price , a shop keeper still makes 10% profit on his cost . If cost price is $1200 , calculate the marked price of the article .

I learned that marked price is the "base price" on an item before any discount is given.

From my understanding of the definition, marked price and cost price must be the same then? But it's not the same , so what's the difference ?

Selling price is the price after discount have been given and this price is what people have to pay to buy the item ?

Pls help... Thanks ..

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  • $\begingroup$ Say I make an object for $100 $(I mean, that's what the materials and labor cost). I mark it for sale at $150$ but ultimately I sell it for $140$. Then the cost price is $100$, the marked price is $150$, and the sale price is $140$. the realized profit is sale price - cost, or $140-100=40$. $\endgroup$
    – lulu
    May 6, 2016 at 13:48

3 Answers 3

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Let S, M and C stand for selling , market and cost prize.

0) C = 1200

1)S = 80% of M, I.e. S = (8/10)M.

2) Profit : 10% of Cost, I.e. P = (1/10) 1200 = 120.

S = C + Profit = 1320, and this gives using 1):

S = (8/10)M = 1320, solve for M:

M = (10/8) 1320 = 13 200/8 = 1650.

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80%×C.P + C.P = S.P 0.8× 1200 + 1200 =$3360 which is my Selling Price.

This S.P represents only 80% because l got a 20%discount. If l didn't get a discount, then I would have had to pay the full 100% which would be my marked price.

Since 80% =3360 Therefore 100% =M.P Cross multiply 0.8 × MP=1×3360 Therefore the marked price is 3360÷0.8 = $4200

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  • $\begingroup$ Wow, that's off by more than a factor of two. There are mistakes not only in the first formula but also in the arithmetic on the numbers. $\endgroup$
    – David K
    Sep 5, 2017 at 19:49
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$\frac{1200}{80} \times 110=1650$ which is marked price here we add $10$ in $100$ because of $10\%$ profit and reduce $20$ from $100$ because of $20\%$ discount

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