Question
A shopkeeper sells a luxury watch at a markup price,
which is (100/3)% above its cost price. Had he purchased the watch for Rs. 300 more and sold it after giving a 10% discount on its previous marked price, he would have neither gained a profit nor incurred a loss. Now, if the shopkeeper aims to earn a 45% profit on the original cost price, find the selling price of the watch.Solution
ATQ, Let the cost price of the luxury watch be Rs. '3a' So, the marked-up price of the luxury watch = '3a' + '3a Ă (1/3) = Rs.'4a' [(100/3)% = 1/3 ] New cost price of the watch = Rs. (3a + 300) New selling price of the watch = Rs.(90/100) Ă 4a = Rs. '3.6a' For no profit and no loss, cost price of the watch = selling price of the watch So, 3a + 300 = 3.6a Or, 0.6a = 300 So, a = 500 Required selling price = 1.45 Ă 3 Ă 500 = Rs. 2175
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