A merchant marked the price of an article by increasing

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

Let the production cost of article be Rs. y.
Here , a = 40% , b = - 20%

∴ Effective percentage =		a + b +	a × b		%
			100

Effective percentage =		40 − 20 −	40 × 20		%
			100

Effective percentage = (20 – 8)% = 12%
According to the question,
12% of y = 48

⇒	12y	= 48
	100

⇒ y =	48 × 100	= Rs. 400
	12