ramesh maks his goods at 40% above the CP but allows a discount of 5 % for the cash payament to his customer. what actual profit does he makes if he receives rs 1064 after allowing a discount
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Let the cost price be 100
He sells the goods at 40% profit.
Selling price=100+40=140
If a person makes cash payment,allows 5% discount
140*5%=7
Thus the selling orice after discount is ₹133.
Thus, he makes a profit of ₹33(140-7) if allowed cash discount.
He receives ₹1064 after allowing discount.
thus,
Original cost price=Cash received*Assumed cost price/Selling price after discount
1064*100/133=800
The cost price of that product is 800
He sold the product at 1064 after discount
Thus his profit will be 264.
He sells the goods at 40% profit.
Selling price=100+40=140
If a person makes cash payment,allows 5% discount
140*5%=7
Thus the selling orice after discount is ₹133.
Thus, he makes a profit of ₹33(140-7) if allowed cash discount.
He receives ₹1064 after allowing discount.
thus,
Original cost price=Cash received*Assumed cost price/Selling price after discount
1064*100/133=800
The cost price of that product is 800
He sold the product at 1064 after discount
Thus his profit will be 264.
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