A dealer bought a TV set for ₹ 25000. He sells it at a discount of 15% but still makes a profit of 20%. Find the marked price.
Answers
Answer:
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%)
Answer : 35294.11 Rs. ✔️
Solution :
Given that :
Cost Price of TV = 25000 Rs.
Profit % = 20%
So, Selling Price = 25000 × (100+20)/100
=> Selling Price = 25000×120/100 = 30000 Rs.
Also, Given that :
Discount% = 15%
Market Price = Selling Price × 100/(100-D%)
=> Market Price = 30000 × 100/(100-15)
=> Market Price = 30000 × 100/85 = 35294.11 Rs.
So, Market Price of TV will be 35294.11 Rs.