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mediumMCQGATE EE 2024 Question Paper (11-Feb-2024) (Shift-2)General Aplitude
1 mark (−0.33)

A shopkeeper buys shirts from a producer and sells them at 20% profit. A customer has to pay ₹3,186.00 including 18% taxes, per shirt. At what price did the shopkeeper buy each shirt from the producer?

  1. A
    ₹2,500.00
  2. B
    ₹1,975.40
  3. C
    ₹2,250.00
  4. D
    ₹2,548.80

Solution & Step-by-step Explanation

The problem asks for the price at which the shopkeeper bought the shirts from the producer. We are given the final price paid by the customer, the tax rate, and the shopkeeper's profit percentage.

Calculate Selling Price Before Tax

The customer pays ₹3,186.00, which includes an 18% tax. Let the selling price before tax be denoted by .

The final price is calculated as:

Therefore,



To find the selling price before tax:



So, the shopkeeper's selling price (before tax) was ₹2,700.00.

Determine Purchase Price

The shopkeeper sells the shirts at a 20% profit. This means the selling price () is 20% higher than the purchase price ().

The relationship is:





To find the purchase price:



The shopkeeper bought each shirt from the producer for ₹2,250.00.

Final Answer Summary

- Selling Price including 18% tax = ₹3,186.00
- Selling Price before tax = ₹2,700.00
- Shopkeeper's Profit = 20%
- Shopkeeper's Purchase Price = ₹2,250.00

Practice this question

Try it yourself before checking the explanation above.

A shopkeeper buys shirts from a producer and sells them at 20% profit. A customer has to pay ₹3,186.00 including 18% taxes, per shirt. At what price did the shopkeeper buy each shirt from the producer?
A
₹2,500.00
B
₹1,975.40
C
₹2,250.00
D
₹2,548.80

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