Mr. Absent Minded instead of marking up the cost price of a PC by 30%

Question

Mr. Absent Minded instead of marking up the cost price of a PC by 30% to prepare Marked Price, he discounted the Cost Price of that PC by 30% and prepared the MRP. Now company usually offers a 10% discount on the Marked Price of each PC in order to boost the sale. If due to this mistake company earns $ 189 less on that PC, what the Cost Price of that PC?

A. 300
B. 350
C. 400
D. 450
E. 500

A. 300
B. 350
C. 400
D. 450
E. 500

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ManifestDreamMBA · Answer

Let CP = x

With 30% MP and 10% D, the final price = 1.3*0.9x
With 30% D and further 10% D, the final price = 0.7*0.9x

1.3*0.9x - 0.7*0.9x = 189
0.6x = 210
x = 2100/6 = 350

GMATinsight · Answer

Let cost = 100
Expected MP = 130
Unfortunate MP = 70
After 10% discount price real price = 70-7 = 63

After 10% discount price expected price = 130-13 = 117
Company earns less = 117-63 = 54

54 = $189
i.e. 100 = $350

Answer: Option B

Dereno · Answer

There are two cases here:

Let’s assume the cost price to be $100.

Normal :

30% markup on Cost price , followed by a discount of 10%

$100 ——-> 30% markup = $130

Discount of 10% = $130 -$13 =  $117

Absent minded :

30% discount on Cost price , followed by a discount of 10%

$100 ——-> 30% discount = $70

Discount of 10% = $70 - $7 =  $63

If due to this mistake company earns $ 189 less on that PC  ( given in question)

117- 63 = 54

this $54 = $189

then cost price = $100 = ? , we get (189*100)/54 =  $350

Option B

Abhiswarup · Answer

two consecutive mark up by suppose a% & b %, the final mark up is arrived by formula

a+b+a*b/100

So, original Selling price= (30-10-3)% mark up= 1.17CP

actual selling price= (-30-10+3)% discount= 0.63CP

Now, 1.17CP-0.63CP=189

0.54CP=189

solving Cost Price=350

answer is B

Mr. Absent Minded instead of marking up the cost price of a PC by 30%

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Mr. Absent Minded instead of marking up the cost price of a PC by 30%

Prep Toolkit

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