Question

The marked price of a merchandise is 20% higher than the cost price. After the merchandise is sold at 90% of the marked price, there is still a profit of RM 24. Find the cost price of the merchandise.​

Answer 1

RM 300

Explanation:

Let's assume that the cost price of the merchandise is "C" in RM.

According to the problem, the marked price of the merchandise is 20% higher than the cost price. Therefore, the marked price can be calculated as:

Marked price = Cost price + 20% of Cost price

Marked price = C + 0.2C

Marked price = 1.2C

The merchandise is sold at 90% of the marked price, which means the selling price can be calculated as:

Selling price = 90% of Marked price

Selling price = 0.9 × 1.2C

Selling price = 1.08C

We are given that the profit after selling the merchandise is RM 24. Profit is calculated as the difference between selling price and cost price. Therefore, we can write:

Profit = Selling price - Cost price

24 = 1.08C - C

24 = 0.08C

Solving for C, we get:

C = 24/0.08

C = 300

Therefore, the cost price of the merchandise is RM 300.