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A merchant marked the price of an article by increasing its production cost by 40%. Now he allows 20% discount and gets a profit of Rs. 48 after selling it.The production cost is
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- Rs. 320
- Rs. 360
- Rs. 400
- Rs. 440
Correct Option: C
Let the production cost of article be Rs. y.
Here , a = 40% , b = - 20%
∴ Effective percentage = | a + b + | % | |||
100 |
Effective percentage = | 40 − 20 − | % | |||
100 |
Effective percentage = (20 – 8)% = 12%
According to the question,
12% of y = 48
⇒ | = 48 | |
100 |
⇒ y = | = Rs. 400 | |
12 |