A shopkeeper marks his goods at 60% above the cost price and then offers a discount of 10% on the marked price. If the cost price of the goods is Rs 7500, what is the final selling price?

Introduction / Context:
This question combines markup and discount concepts that frequently appear together in profit and loss chapters. A shopkeeper first increases the price over cost (markup) and then reduces that increased price for customers by giving a discount. The aim is to calculate the final selling price given both percentages and the original cost price. Understanding how to sequence and apply these percentage changes is crucial for solving similar exam problems correctly.

Given Data / Assumptions:

• Cost price (CP) of the goods = Rs 7500.
• Marked price (MP) is 60% above cost price.
• Discount offered on marked price = 10%.
• We need to find the final selling price (SP) after applying the discount.

Concept / Approach:
We first compute the marked price using the markup percentage based on cost price. That is, MP = CP * (1 + markup/100). Then we apply the discount to the marked price, so SP = MP * (1 − discount/100). It is vital to remember that the discount is applied on the marked price, not on the cost price. Doing these operations step by step avoids confusion and gives the exact selling price.

Step-by-Step Solution:
Step 1: Given cost price = Rs 7500. Step 2: Markup is 60%, so marked price MP = 7500 * (1 + 60/100) = 7500 * 1.6. Step 3: Calculate marked price: 7500 * 1.6 = 12000. So MP = Rs 12000. Step 4: Discount on MP is 10%, so selling price SP = MP * (1 − 10/100) = 12000 * 0.9. Step 5: Compute SP: 12000 * 0.9 = 10800. Step 6: Therefore, the final selling price after discount is Rs 10800.

Verification / Alternative check:
We can check the overall effect as a combined factor. Markup factor = 1.6, discount factor = 0.9. Net factor on cost price = 1.6 * 0.9 = 1.44. Apply this directly to CP: SP = 7500 * 1.44 = 10800, which matches the stepwise computation. This confirms that both methods are consistent and that the final answer is correct.

Why Other Options Are Wrong:

• 11800 and 12800 would correspond to different combinations of markup and discount or calculation mistakes.
• 13800 is even higher, suggesting little or no discount after markup, which does not match the given 10% discount.

Common Pitfalls:
Some learners mistakenly add percentages directly to the cost price without sequencing, for example trying to apply discount first or using markup minus discount on cost price. Others forget that the discount is always applied to the marked price, not the original cost. Rounding errors are not an issue here since all numbers are clean, but incorrect order of operations can easily lead to wrong answers. Always compute marked price first and then discount it to get the selling price.

Final Answer:
The final selling price of the goods is Rs 10800.