A trader sells a toy for 615 after giving a discount of 18% on its marked price. If he sells it at 80% of itsmarked price, then he earns a profit of 20%. What is the cost price of the toy?

Correct option is A

Given :

Selling price after 18% discount = ₹615

Hence this selling price is 82% of Marked Price (MP)

If sold at 80% of MP, profit = 20%

Formula Used :

Discounted Price = MP × (1 − Discount %)

Profit % =$$\dfrac{SP - CP}{CP} \times 100$$​​

Solution :

Find Marked Price (MP)

82% of MP = 615

MP =$$\frac{615 \times 100}{82} =$$​750
Selling price at 80% of MP

SP = 80% of 750 = 600

Given profit = 20%
SP = 120% of CP

CP $$= \frac{600 \times 100}{120} =$$​ 500

Cost price of the toy = ₹500