Question

The owner of a retail store purchased T-shirt at Rs. 40 each. The past record shows that operating expenses are 30%

of cost price. At what lowest selling price should he shell each shirt so as to earn a net profit of 20% on cost price?​

Answer 1

Answer:

A person buys a shirt with a marked price of Rs. 300 at a 20% discount. In order to make a profit of 20%, how much should the person sell the shirt for?

Original question: A person buys a shirt with a marked price of Rs. 300 at a 20% discount. In order to make a profit of 20%, how much should the person sell the shirt for?

Answer:

Now, given that marked price of the shirt is ₹ 300, the person bought it at 20% discount. This means he paid 300 - (20% of 300) to buy the shirt.

=> 300 - (0.2*300)

=> 300 - 60 = ₹ 240 -> cost price of shirt.

In order to sell the shirt at 20% profit, he needs to add 20% of cost price to itself.

Remember that profit or loss is always calculated on cost price, and not on the marked price.

=> 240 + (20% of 240)

=> 240 + (0.2*240)

=> 240 + 48

=> ₹ 288

Answer 2

Answer:

Yes upwards is right ...