A dealer marks an article 40% above the cost price and sells it to a customer, allowing two successive discounts of 20% and 25% on the marked price. If he suffers a loss of ₹ 140, then the cost price (in ₹) of the article is:
Answer & explanation
Correct answer: option 4
Let CP = Rs. 100
Let the MP of the article = 100 × \(\frac{7}{5}\) = Rs. 140
Discounts = 20% and 25%
SP of the article = 140 × \(\frac{80}{100}\) × \(\frac{75}{100}\) = Rs. 84
Loss = 100 – 84 = 16
16 = 140
1 = \(\frac{140}{16}\)
CP of the article = \(\frac{140}{16}\) × 100 = Rs. 875