Question

A shopkeeper allows $23\%$ commission on his advertised price and still makes a profit of $10\%$. If he gains Rs. 56 on one item, find his advertised price.

Answer 1

Rate of commission $=23\%$
Profit $=10\%$
Total gain = Rs. 56
$\therefore$ Cost price $=\frac{100\times 56}{10}=Rs.560$
Selling price = C.P + gain = Rs. 560 + 56
=Rs. 616
$\therefore$ Marked (Advertised) price
$=\frac{S.P\times 100}{100-commission\%}=\frac{616\times 100}{100-23}=Rs.\frac{616\times 100}{77}=Rs.800$