Correct Option: B Let $\text{CP}$ be the Cost Price of the item. Let $\text{MP}$ be the Marked Price of the item. Let $\text{SP}$ be the Selling Price of the item. We are given the following information: 1. The item is marked up by $40\%$ above its cost price. So, $\text{MP} = \text{CP} + 0.40 \times \text{CP} = 1.40 \times \text{CP}$. 2. The selling price of the item is $\text{Rs. } 1680$. So, $\text{SP} = \text{Rs. } 1680$. 3. The shopkeeper makes a profit of $12\%$. This means the profit is $12\%$ of the Cost Price. So, $\text{SP} = \text{CP} + 0.12 \times \text{CP} = 1.12 \times \text{CP}$. We need to find the Cost Price ($\text{CP}$) of the item. From the third piece of information, we can directly establish a relationship between the Selling Price and the Cost Price: $\text{SP} = 1.12 \times \text{CP}$ Substitute the given value of $\text{SP}$: $1680 = 1.12 \times \text{CP}$ To find $\text{CP}$, divide $1680$ by $1.12$: $\text{CP} = \frac{1680}{1.12}$ To simplify the calculation, remove the decimal from the denominator by multiplying both the numerator and the denominator by $100$: $\text{CP} = \frac{1680 \times 100}{1.12 \times 100} = \frac{168000}{112}$ Now, perform the division: $\text{CP} = 1500$ Thus, the cost price of the item was $\text{Rs. } 1500$. Note: The information about the item being marked up by $40\%$ is additional and can be used to find the discount percentage, but it is not required to find the cost price. Marked Price (if needed) = $1.40 \times 1500 = \text{Rs. } 2100$. Discount = $\text{MP} - \text{SP} = 2100 - 1680 = \text{Rs. } 420$. Discount Percentage = $(\frac{420}{2100}) \times 100\% = 20\%$. The final answer is $\text{Rs. } 1500$.