A retail store sets the list price of a product at ₹850. After offering a concession of 20% on this list price, the shopkeeper secures a profit margin of 12%. Determine the approximate cost price of the item.

The correct option is ₹607.

Let us break down the problem step-by-step to find the approximate cost price of the item.

Step 1: Find the Selling Price (SP) of the product.
The store sets the list price (Marked Price or MP) of the product at ₹850.
A discount (concession) of 20% is offered on this list price.
Discount amount = 20% of ₹850

$\text{Discount}=\frac{20}{100}\times 850=170$

Selling Price (SP) = Marked Price (MP) - Discount
$\text{SP}=850-170=680$

So, the selling price of the product is ₹680.

Step 2: Calculate the Cost Price (CP).
The shopkeeper secures a profit margin of 12% on the cost price.
The relationship between Selling Price (SP), Profit %, and Cost Price (CP) is given by:

$\text{SP}=\text{CP}\times \left(1+\frac{\text{Profit \%}}{100}\right)$

Substituting the known values into the equation:

$680=\text{CP}\times \left(1+\frac{12}{100}\right)$

$680=\text{CP}\times \frac{112}{100}$

$\text{CP}=\frac{680\times 100}{112}$

$\text{CP}=\frac{68000}{112}\approx 607.14$

Thus, the approximate cost price of the item is ₹607.