A shopkeeper marked every item $25 \%$ above the cost price and allowed $10 \%$ discount. Shruti being a regular customer got $5 \%$ additional discount on the bill and paid ₹ 2394 for the item purchased. What is the cost price of the item (in ₹)?
Answer & explanation
Correct answer: option 1
Let the Cost price = 100X
Then the marked price = 125x
Discounts = 10% and 5%
Selling price = 125X × \(\frac{9}{10}\) × \(\frac{19}{20}\) = 2394 (Given)
= 125X × \(\frac{171}{200}\) = 2394
x = 22.4
Cost price (100x ) = 2240