A profit of 20% is made after giving a discount of 10% on an article. If the marked price of the article is Rs 2240, then what is its cost price (in Rs)?

Options

A. 1720
B. 1680
C. 1740
D. 1800

Answer

To find the cost price of the article given the marked price, discount, and profit percentage, we can follow these steps:

### Step-by-Step Solution

1. **Identify the Marked Price (MP)**:
The marked price of the article is given as Rs 2240.

2. **Calculate the Selling Price (SP)**:
Since a discount of 10% is given on the marked price, we can calculate the selling price using the formula:
\[ SP = MP - (Discount \% \times MP) \]
Here, the discount is 10%, so:
\[ SP = 2240 - (10\% \times 2240) = 2240 - 224 = 2016 \]

3. **Relate Selling Price to Cost Price**:
We know that a profit of 20% is made on the cost price (CP). The relationship between selling price and cost price is given by:
\[ SP = CP + (Profit \% \times CP) = CP + 0.20 \times CP = 1.20 \times CP \]
Therefore, we can express the cost price in terms of the selling price:
\[ CP = \frac{SP}{1.20} \]

4. **Substitute the Selling Price**:
Now, substituting the selling price we calculated:
\[ CP = \frac{2016}{1.20} \]

5. **Calculate the Cost Price**:
Performing the division:
\[ CP = \frac{2016}{1.20} = 1680 \]

Thus, the cost price of the article is Rs 1680.