Question

A trade discount of 15% on an article listed at ₹75 was allowed to the retailer by a whole saler. If the retailer gives a cash discount of 5% on the listed price, then what profit does the retailer make? Also, find his profit percent

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Answer 1

Answer:

Step-by-step explanation:

Here,

Trade discount=Rs.75

Trade discount(%)=15%

Cash discount(%)=5%

Let, the MP of article be x.

Then,

   TD=D% of MP

or,75=15% X x

or,7500/15=x

Therefore,x=500

Now,

CP=MP-TD% of MP

    =500-15% X 500

    =500-75

    =Rs.425

Now,

SP=CP-D% of CP

   =500-5% X 500

   =500-5/100 X 500

   =500-25

   =Rs.475

Now,

Profit=SP-CP

        =Rs.475-Rs.425

        =Rs.50

Finally,

P(%)=P/CP X 100%

      =50/425 X 100%

      =11.76%