Question
A buys an article listed at Rs 1,500 and gets successive
discounts of 15% and 20%. He spends 5% of his cost price on transport. At what price should he must sell the article to earn a profit of 12%?Solution
CP = 85% of 80% of 1500 = 1020 CP + transportation cost = 105% of 1020 = 1071 ∴ SP = 112% of 1071 = Rs. 1199.52 Alternate Method: Single equivalent discount for successive discounts of 15% and 20%. 15 + 20 - (15 × 20)/100 = 35 – 3 = 32% ∴ SP = (100 – 32)% of 1,500 = (68 × 1500)/100 = Rs 1020 Expenditure on transport = 1020 ×5/100 = Rs 51 Total CP = 1020 + 51 = Rs 1,071 ∴ Required SP = 1071 ×112/100 = Rs. 1,199.52
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