A dealer buys an old cooler listed at ₹650 and gets successive discounts of 20% and 10%. He spends ₹38 on its repairs and sells it at a profit of 20%. Find the selling price of the cooler.

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SSC CGL 2022 Tier-I Official Paper (Held On : 01 Dec 2022 Shift 4)
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  1. ₹7.80
  2. ₹700
  3. ₹790
  4. ₹607.2

Answer (Detailed Solution Below)

Option 4 : ₹607.2
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Detailed Solution

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Given:

Marked price = Rs. 650

Discounts = 20% and 10%

The cost of repairs = Rs. 38

Selling profit = 20%

Formula used:

C.P. = [(100 - Discount%)/100] × M.P.

S.P. = C.P. × [(100 + Profit%)/100]

Where, C.P. = Cost price; S.P. = Selling price; M.P. = Marked price

Calculation:

The cost price = 650 × [(100 - 10)/100] × [(100 - 20)/100]

= 650 × (90/100) × (80/100) = Rs. 468

Total spending = 468 + 38 = Rs. 506

The selling price = 506 × [(100 + 20)/100]

= 506 × (120/100)

= Rs. 607.2

∴ The required selling price is Rs. 607.2.

∴ Option 4 is the correct answer.

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