A retailer marks an air conditioner 80% above its cost price. He offers a first discount of 25% on the marked price. During a festive offer, an additional discount of 10% is applied on the already discounted price. If the final selling price is ₹15,552, what is the approximate cost price of the air conditioner?"
- (a)₹9,000
- (b)₹9,200
- (c)₹12,800
- (d)₹10,000
Answer
Why
Correct — C. Turn every step into a multiplier on the cost price and chain them.
Mark-up 80%: MP = 1.8 × CP
First discount 25%: 1.8 × 0.75 = 1.35 × CP
Second discount 10%: 1.35 × 0.9 = 1.215 × CP
1.215 × CP = 15,552
CP = 15,552 ÷ 1.215 = ₹12,800 → option (c).
Why the others are wrong
- (a)₹9,000 — Run it forward: 9,000 × 1.8 × 0.75 × 0.9 = ₹10,935, about ₹4,600 short of the ₹15,552 selling price.
- (b)₹9,200 — Forward check: 9,200 × 1.215 = ₹11,178. The stem's selling price is ₹15,552, so this cost is far too low.
- (d)₹10,000 — Forward check: 10,000 × 1.215 = ₹12,150, not ₹15,552. A cost of ₹10,000 would need a final price about ₹3,400 lower than the one given.
Concept
Successive percentage changes multiply; they do not add. An 80% mark-up and discounts of 25% and 10% give 1.8 × 0.75 × 0.9 = 1.215, a net 21.5% above cost.
Once the net multiplier is known, the cost price is one division: SP ÷ 1.215.
The second discount is on the already discounted price, so 25% then 10% is a single discount of 32.5%, not 35%.
The stem asks for the approximate cost price, but the division is exact: 12,800 × 1.215 = 15,552 to the rupee.
Key facts
- Successive discounts of a% and b% leave (1 − a⁄100)(1 − b⁄100) of the marked price.
- Discounts of 25% then 10% equal a single discount of 32.5%.
- An 80% mark-up followed by 25% and 10% discounts sells at 1.215 times cost, a 21.5% profit.
Study next
Common traps
- Adding the discounts to 35%, which gives 1.8 × 0.65 = 1.17 and a cost of about ₹13,292.
- Netting everything as 80 − 25 − 10 = 45% profit, which gives 15,552 ÷ 1.45 ≈ ₹10,726.
A mark-up followed by two successive discounts, run forward to a profit, is on 26 Sep 2024, 16:00, Quant Q.21: cost ₹1,000, marked ₹1,500, then 20% and 10% off, selling at ₹1,080 for an 8% gain.
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