Question
When a retailer offers a discount of 30% on a product,
they suffer a 15% loss. The difference between the discount allowed and the loss amounts to Rs. 1500. Determine the selling price of the product if the retailer desires a 25% profit.Solution
ATQ, Let the cost price of the product be Rs. '100y'. Selling price after loss = 0.85 × 100y = Rs. '85y'. Marked price = (85y / 0.70) = Rs. (850y / 7). Loss incurred = 100y - 85y = Rs. '15y'. Discount given = (850y / 7) - 85y = Rs. (255y / 7). So, (255y / 7) - 15y = 1500. Or, (150y / 7) = 1500. Or, 150y = 10500 Or, y = 70. Required selling price = 1.25 × 100 × 70 = Rs. 8,750.
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