Question

A shopkeeper buys a DVD player at a discount of 20% on the Marked price. He spends ₹20 on transportation. If he sells it for ₹ 660 inclusive of sales tax @ 10%, then his profit % is _____.

• A. 15%
• B. 20%
• C. 14%
• D. 25%

Answer 1

The correct option is B

20%

Let the Marked Price be ₹ $x$.

The Price at which the shopkeeper buys the DVD player = $x-\frac{20x}{100}$ = $\frac{80x}{100}$

He spends ₹ 20 on transportation.

Sales tax at 10% on MP = $\frac{10x}{100}$

SP is inclusive of Sales Tax of 10%.

$\therefore$ According to the problem :

$\frac{110x}{100}$ = ₹ 660

$\Rightarrow$ $x$ = ₹ 600 = MP

$\therefore$ CP for shopkeeper = $\frac{80x}{100}\times$MP + ₹ 20 = $\frac{80\times 600}{100}$ = ₹ 480 + ₹ 20 = ₹ 500

Profit = SP - CP = ₹ 600 - ₹ 500 = ₹ 100

Profit % = $\frac{100}{500}\times$100 = 20%