Question
A company declared 20% discount for wholesale buyers on
an item. A wholesaler bought the item from the company for â‚ą400 after getting a discount. He fixed up selling price of the item in such a way that he earned a profit of 15% on the original company price. What is the selling price of the item?Solution
Given, after 20% discount, cost price of the item for the wholesale buyer = â‚ą400 Let the original company price be x. ∴ x - 20% of x = â‚ą 400 ⇒ 0.8x = 400 ⇒ x = â‚ą 500 He earned a profit of 15% on the original company price. ⇒ Selling price of the item = â‚ą 500 + 15% of â‚ą 500 = 1.15 * 500 = â‚ą 575
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