Final answer:
The cost of the article is 10000 sh., close to option A.
Step-by-step explanation:
To calculate the cost of the article, we need to first determine the selling price after the discount.
A discount of 10% on the marked price of 12000 sh would be 10% of 12000, which is (10/100) * 12000 = 1200 sh. Therefore, the selling price after the discount is 12000 sh - 1200 sh = 10800 sh.
We know that Mr. Omanga still made a profit of 8% on the cost price. Let's denote the cost price of the article as C sh.
Profit = Selling Price - Cost Price
8% of C = 10800 sh - C
Simplifying the equation, we get:
0.08C = 10800 sh - C
1.08C = 10800 sh
C = 10800 sh / 1.08
C = 10000 sh
Therefore, the cost of the article is 10000 sh. Option A.