A company sells goods at a markup of 25% above the cost price. During a sale, the company offers a 10% discount on the marked price. If the customer pays ₹540 after the discount, then what was the original cost price of the goods?

The correct answer is ₹480.

Step-by-Step Solution:

Step 1: Understand the given information

Let the original cost price of the goods be $CP$.

Markup percentage = 25%

Discount percentage = 10%

Selling price after discount ($SP$) = ₹540

Step 2: Express the Marked Price (MP) in terms of Cost Price (CP)

The marked price is 25% above the cost price:

$MP=CP+(25\%\text{of}CP)$

$MP=CP\times (1+0.25)=1.25\times CP$

Step 3: Express the Selling Price (SP) in terms of Marked Price (MP)

The company offers a 10% discount on the marked price:

$SP=MP-(10\%\text{of}MP)$

$SP=MP\times (1-0.10)=0.90\times MP$

Step 4: Substitute MP into the SP equation and solve for CP

$SP=0.90\times (1.25\times CP)$

$SP=1.125\times CP$

We are given that $SP=540$:

$540=1.125\times CP$

$CP=\frac{540}{1.125}$

$CP=480$

Therefore, the original cost price of the goods was ₹480.