Question

A firm dealing in furniture allows 4% discount on the marked price of each item. What price should be marked on a dining table which costs Rs. 4000 to assemble so as to make a profit of 20%.

Answer 1

Cost Price = Rs 4000

Find expected profit:

Expected profit = 20% of 4000

Expected profit = 0.2 x 4000

Expected profit = Rs 800

Find selling Price after discount:

Selling Price after discount = 4000 + 800

Selling Price after discount = Rs 4800

Find Selling Price before 4% discount:

100 - 4 = 96%

96% = Rs 4800

1% = Rs 50

100% = 50 x 100

100% = Rs 5000

Answer: The selling price should be set at Rs 5000

Answer 2

Answer:

The answer is rs 5000

Step-by-step explanation:

Refer to the above picture for further explanation.