A trader sells one item to a retailer at a discount, but charges on the discounted price, for delivery and packaging. The retailer sells it for more, thereby earning a profit of . At what price had the trader marked the item?
- A
- B
- C
- D
Solution & Step-by-step Explanation
Let the Marked Price () set by the trader be .
* The trader gives a discount, so the discounted price .
* The trader adds a charge on this discounted price for delivery and packaging.
* Thus, the final price paid by the retailer (which is the retailer's Cost Price, ) is:
The retailer sells the item for more than their cost price. This markup/increase is their absolute profit amount:
We are given that the retailer earns a profit percentage of :
Thus, the marked price of the item was .
* The trader gives a discount, so the discounted price .
* The trader adds a charge on this discounted price for delivery and packaging.
* Thus, the final price paid by the retailer (which is the retailer's Cost Price, ) is:
The retailer sells the item for more than their cost price. This markup/increase is their absolute profit amount:
We are given that the retailer earns a profit percentage of :
Thus, the marked price of the item was .