In a stock clearance sale, a shopkeeper gives 40% off on all his items. He incurs a loss of 25% by selling an item of marked price 2,000. Which one of the following is the cost price of this item?

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Submitted by examrobotsa on

Q: 76 (CAPF/2021)
In a stock clearance sale, a shopkeeper gives 40% off on all his items. He incurs a loss of 25% by selling an item of marked price 2,000.
Which one of the following is the cost price of this item?

question_subject: 

Logic/Reasoning

question_exam: 

CAPF

stats: 

0,11,8,4,4,11,0

To find the cost price of the item, we need to first calculate the selling price after the discount.

The shopkeeper gives a 40% discount, which means the customer pays only 60% of the original price. So, the selling price of the item will be 60% (or 0.60) of the marked price.

Let`s calculate the selling price:

Selling price = 0.60 * 2000

= 1200

The question states that the shopkeeper incurs a loss of 25% on this selling price. This means that the cost price is 75% (or 0.75) of the selling price.

Let`s calculate the cost price:

Cost price = 0.75 * 1200

= 900

However, none of the provided options match the calculated cost price of 900. Therefore, the correct answer should be "Alert - correct answer should be 900".