The sale price of an article including the sales tax is Rs. 1232. The rate of sales tax is 10%. If the shopkeeper has made a profit of 12%, then the cost price of the article is = ?

A. Rs. 900

B. Rs. 950

C. Rs. 1000

D. Rs. 1120

Answer: Option C

Solution(By Examveda Team)

Let the cost price of article be Rs. x
Profit = 12%
Rate of sales tax = 10%
Sale price of an article including sales tax = Rs. 1232
According to the question,
$$\eqalign{ & \Rightarrow \frac{{112x}}{{100}} + \frac{{112x \times 10}}{{10000}} = 1232 \cr & \Rightarrow \frac{{1120x + 112x}}{{1000}} = 1232 \cr & \Rightarrow 1232x = 1232 \times 1000 \cr & \Rightarrow x = {\text{Rs}}{\text{. }}1000 \cr} $$