Question

The price of an article is marked as 12000 sh. Mr. Omanga sold the article at a discount of 10% and still made a profit of 8%. Calculate the cost of the article.

a. 9600 sh.
b. 10800 sh.
c. 11200 sh.
d. 11040 sh.

Answer 1

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.