Question

A retailer buys an article at a discount of 20% on the listed price from a wholesaler. The shopkeeper marks up the price by 10% on the listed price. A buyer pays Rs 231 to get it after paying a sales tax at the rate of 5% on the price asked for. Find the profit percentage.

Answer 1

Let listed price be x. Rebate on listed price = 20 % of listed price 

Rebated price = x - 20 % of x

= `x - (20 x)/100`   

= `(80  x)/100`  ............(i)

Effective marked price = listed price + 10 % of listed price 

= `x + 10/100 xx x`

= `(110  x)/100`

Sales tax = 5 %  of the effective marked price 

= `5/100 xx "Rs"  (110 x)/100`

= Rs `(55  x)/1000`

Total cost = 

= Rs `(110  x)/100 +  "Rs"  (5 x)/1000`

= `(1105  x)/1000`

But total cost = Rs 231 

⇒ `(1105  x)/1000` = Rs 231

⇒ 1105 x = Rs231000 

⇒  x = Rs 209. 04 

Listed price = Rs 209 

Cost price for shopkeeper = `(80  x)/100`  .................(from (i))

= Rs `80/100 xx 209`

= Rs 167.20

Effective marked price = `(110 x)/100`   ...................(from (ii))

= Rs `110/100 xx 209`

= Rs 229.90

His profit = (effective marked price - rebated cost price) 

=Rs (229.90-167.20) =Rs 62.70 

His profit percentage = `62.70/167.20 xx 100 = 37.5 %`

Hence, his profit percentage = 37.5 %