Question

a retailer buys an article at a commission of 10 % on the listed price from wholesale dealer. he marks of the price by ten percent. due to difficulty in selling it at a raised price, he announces a discount of 5 % to the buyer .if a buyer purchase it at Rs 451.44 inclusive of a sale tax of eight percent on the price asked for then find the listed price and the profit percentage for the retailer.

Answer 1

Let the listed price be x::

The selling price at a commission of 10% is :

1.10x

The selling price at a profit of 10% is :

1.10 × 1.10x = 1.21x

If he sells at a discount of 5% instead the sp will be :

0.95 × 1.21x = 1.1495x

The tax is equal to :

8/100 × 451.44 = 36.1152

The cost price is : 451.44 - 36.1152 = 415.3248

1.1495x = 415.3248

X = 415.3248/1.1495

X = 361.31

Cost price :

Rs 361.31