Question

the catalogue price of an article is rs 16, but the retailer is allowed trade discount of 25%. at what price must the retailer sell it to gain 25% of what he pays for it.

Answer 1

Catalog price = rs. 16
Price for seller =rs. (16-( 25%of 16))=12
To make 25%gain on what he pays he has to sell it at 12+(25%of 12)
=12+3=₹15

Answer 2

Retailer should sell it at Rs. 15.

Given - Catalogue price, discount and profit

Find - Selling price

Solution - Firstly finding the cost price for the retailer. Now, he wants to make 25% profit on his cost price. So, performing calculation accordingly-

Cost price of article = 16 - 25%×16

Cost price = 16 - $\frac{25}{100} \times 16$

Performing multiplication and division

Cost price = 16 - 4

Performing subtraction

Cost price = Rs. 12

Now, to make 20% profit on cost price of Rs. 12, the Selling price can be calculated by the formula-

SP = (100+P%)/100×CP

Keep the values in formula to find the value of selling price

SP = (100+25) /100×12

Performing addition in bracket

SP = 125/100×12

Performing Division

SP = 1.25×12

Performing multiplication

SP = Rs. 15

Hence, retailer should sell at Rs. 15 to gain 25% on his cost price.

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