8
A dealer bought a TV set for 25,000. He sells it at a rebate of 15% but still
makes a profit of 20%. Find the MRP.
Answers
Answer:
Step-by-step explanation:
Profit and Loss: Concept of Discounts and Marked Price Explained
In the first part of Profit and Loss series, we learnt the basic definitions and the meaning of Cost Price, Selling Price, Marked price etc. Let us revise the definition of Marked Price. As we saw earlier, traders are in the habit of marking their articles at a certain price above their costs. Then the discounts they offer are on this marked price, thereby they actually make sure that have already factored in the profit they want.
Discounts are offered on the marked price and the selling price is determined by the discount offered on the marked price. For the process of simplification, let us assume:
C = Cost price
S = Selling price
M = Market price
D% = Discount
G% = Gain
Now,
Discount = D% of marked price, M
Discount = Marked Price – Selling Price
Marked Price – Amount of Discount = Selling Price
M (1-D%) = Selling Price
Also, Selling Price = Cost Price + Gain
Thus,
M (1-D%) = C (1 + G%)
Or in other words
Marked Price (1 – Discount%) = Cost Price (1 + Gain%)
Example-1: Natasha offers her customers a discount of 10% on her beauty products and she still makes a profit of 20%. What is the actual cost to her of that beauty product marked Rs. 400?
Solution:
Marked price = Rs. 400
Discount = 10%
Profit = 20%
Therefore, the Selling Price = 90% of 400
Therefore 400 x 90/100 = Rs. 360
Selling price = Rs. 360
Profit = 20%
Cost price = 100/120 x 360 = Rs. 300
Profit and Loss: Concept of successive discounts
If successive discounts of x% and y% are allowed on the marked price M of the discount, then, after discount the customer finally ends up paying:
Selling Price = (1-x%)(1-y%) x Marked Price
If you look at the above formula closely, you would see that the multiplication is nothing else but a percentage equivalent of two successive percentage change on a number.
Example-2: Pankaj offers a 10% discounts on his goods and he offers a further discount of 5% on the reduced price to those customers who pay cash. What does a customer have to pay in cash for a cricket bat of Rs. 200?
Solution:
Price of the cricket bat = Rs. 200
After Discount of 10% Marked price would be Rs. 180
Since he is purchasing the bat by cash, so a discount of 5% is applicable again on the reduced marked price. Thus, the final selling price the cricket bat would be of Rs. 171