CAT 2025 Slot 2 QA Question 19: An item with a cost price of Rs. $1650$ is sold at a certain discount on a fixed marked price to earn a profit of $20\%$ on the cost price. If the discount was doubled, the profit would have been Rs.

Question

An item with a cost price of Rs. $1650$ is sold at a certain discount on a fixed marked price to earn a profit of $20\%$ on the cost price. If the discount was doubled, the profit would have been Rs.

Accepted Answer

The first selling price gives $20\%$ profit on Rs. $1650$.
$	ext{SP} = 1650 	imes 1.2 = 1980$

Let the marked price be $M$ and the initial discount fraction be $d$.
$M(1-d) = 1980$
$M(1-2d) = 1650 + 110 = 1760$

Subtracting the second equation from the first,
$Md = 220$
Also, $M - Md = 1980$
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