The cost price (including making charges) of a necklace is ₹2,50,000, and Amit wants to make 15% profit by selling it. At the time of the sale, he declares a discount of 5% on the making charges of the necklace. If making charges are ₹20,000, what is the marked price of the necklace?

Correct option is D

Given:

Cost Price (CP) of necklace (including making charges) = ₹2,50,000

Making charges = ₹20,000

Profit percentage = 15%

Discount on making charges = 5%

Formula used:

Marked Price (MP) = Selling Price (SP) + Discount on making charges

SP = CP + Profit

Profit = (Profit % of CP)

Discount = (Discount % of Making Charges)

Solution:

Profit = 15% of ₹2,50,000

Profit = $$\frac{15}{100} \times 2,50,000$$​= ₹37,500

SP = CP + Profit

SP = 2,50,000 + 37,500 = ₹2,87,500

Discount on making charges = 5% of ₹20,000

Discount =$$\frac{5}{100} \times 20,00$$​0 = ₹1,000

Marked Price (MP) = SP + Discount

MP = 2,87,500 + 1,000 = ₹2,88,500

Final Marked Price = ₹2,88,500