Question

The owner of the retail store purchase T shirts at Rs 2275 each. The past shows that operating expenses are 20% of the selling. At what lowest price should he sell each shirt to earn net profit of 15% on the selling price? Correct Ans is 3500 but how? Any one can provide the solution... ​

Answer 1

Answer:

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Step-by-step explanation:

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

Therefore, the person needs to sell the shirt at ₹ 288 in order to make a 20% profit on it.