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
Solution & Step-by-step Explanation
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