The bar graph shows the total item manufactured by four companies A, B, C and…

Concept

When an article is sold, the seller fixes a Marked Price (MP) above the Cost Price (CP), then may allow a discount on that MP. The amount actually received is the Selling Price (SP):

MP = CP × (1 + markup%)

SP = MP × (1 − discount%)

Profit per item = SP − CP

So profit is decided by CP together with the markup and discount — not by how many items are manufactured or sold.

Application

1. Markup is 20% of CP, so MP = 1.20 × CP.

2. A discount of 10% is given on MP, so SP = 0.90 × MP = 0.90 × 1.20 × CP = 1.08 × CP.

3. Profit per item of C = SP − CP = 1.08×CP − CP = 0.08 × CP.

4. From the note, profit per item of C = 85, so 0.08 × CP = 85, giving CP = 85 ÷ 0.08 = 1062.5.

5. Marked Price of each item of C = 1.20 × CP = 1.20 × 1062.5 = 1275.

Cross-check

With CP = 1062.5 and MP = 1275, the discounted price is 0.90 × 1275 = 1147.5, and the profit is 1147.5 − 1062.5 = 85, exactly the given profit. The manufactured and sold bars are not needed here — the markup, discount and the stated profit alone fix the marked price.