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A shopkeeper allows 23% commission on his advertised price and still makes a profit of 10%. If he gains ₹ 56 on one item, his advertised price of the item (in ₹) is
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- 820
- 780
- 790
- 800
Correct Option: D
Advertised price of the item = ₹ N
∴ Commission on advertised price of the article = ₹ (N x 23)/100
Price after commission = N - (23N/100) = ₹ 77N/100
∴ CP of the item = [(77N/100) x 100]/(100 + 10) = 77N/110 = ₹ 7N/10
Profit = 77N/100 - 7N/10 = ₹ 7N/100
⇒ 56 = 7N/100
∴ N = (56 x 100)/7 = ₹ 800
