A retailer marks up his goods by 20% and then offers 25% discount. What will be the selling price on an item that he sells if its cost price (in Rs.) is Rs 2500?

Options

A. 2400
B. 3000
C. 2750
D. 2250

Answer

To solve the problem step by step, we will calculate the Selling Price (SP) after applying the markup and discount on the Cost Price (CP).

### Step 1: Calculate the Marked Price (MP)
The retailer marks up his goods by 20%. This means the Marked Price (MP) can be calculated using the formula:

\[ MP = CP + (20\% \text{ of } CP) \]

Given that the Cost Price (CP) is Rs 2500, we can calculate:

\[ MP = 2500 + (0.20 \times 2500) \]

Calculating the markup:

\[ 0.20 \times 2500 = 500 \]

So,

\[ MP = 2500 + 500 = 3000 \]

### Step 2: Calculate the Selling Price (SP) after Discount
The retailer offers a 25% discount on the Marked Price. The Selling Price (SP) can be calculated using the formula:

\[ SP = MP - (25\% \text{ of } MP) \]

Calculating the discount:

\[ SP = 3000 - (0.25 \times 3000) \]

Calculating the discount amount:

\[ 0.25 \times 3000 = 750 \]

So,

\[ SP = 3000 - 750 = 2250 \]

### Final Answer
The Selling Price (SP) of the item is Rs 2250.

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