Question

A shopkeeper allows 23% commission on his advertised price and still makes a profit of 10%. If he gains Rs 56 on one item find his advertised price.

Answer 1

CP. MP. SP
700. 1000. 770
.

70=56
1000= 56×1000/70=800✓

Answer 2

Given that,

Commission on advertised price is 23%

Profit = 10%

Gain = Rs 56

To find,

His advertised price.

Solution,

Let the cost price is x.

It means, SP = 110x/100

SP = Rs 1.1 x

We know that, Profit = SP-CP

56 = 1.1 x-x

⇒ 0.1x = 56

x=Rs 560

The advertised price :

$P=\dfrac{1.1x}{1-0.23}\\\\P=\dfrac{1.1\times 560}{1-0.23}\\\\P=Rs.800$

Hence, his advertised price is Rs 800.