A dealer buys an article listed at ₹250 and gets successive discounts of 12% and 16%. He spends 10% of the cost price on transportation. At what price should he sell the article to earn a profit of 25%? (Correct to two places of decimal)
- A₹244.10
- B₹274.10
- C₹264.10
- D₹254.10
Solution & Step-by-step Explanation
List Price = ₹250
Successive discounts are 12% and 16%.
Price after first discount = 250×(1−
100
12
)=250×0.88=₹220
Price after second discount = 220×(1−
100
16
)=220×0.84=₹184.80
So, the initial purchase cost (CP
initial
) = ₹184.80
Transportation cost = 10% of CP
initial
Transportation cost=
100
10
×184.80=₹18.48
Total Cost Price (Total CP) = 184.80+18.48=₹203.28
To earn a profit of 25%, the Selling Price (SP) should be:
SP=Total CP×(1+
100
25
)
SP=203.28×1.25=₹254.10
Successive discounts are 12% and 16%.
Price after first discount = 250×(1−
100
12
)=250×0.88=₹220
Price after second discount = 220×(1−
100
16
)=220×0.84=₹184.80
So, the initial purchase cost (CP
initial
) = ₹184.80
Transportation cost = 10% of CP
initial
Transportation cost=
100
10
×184.80=₹18.48
Total Cost Price (Total CP) = 184.80+18.48=₹203.28
To earn a profit of 25%, the Selling Price (SP) should be:
SP=Total CP×(1+
100
25
)
SP=203.28×1.25=₹254.10