Question

A shopkeeper buys an article at 70% of its printed price. He spends Rs. 40 on transportation of the article. After charging Sales Tax at the rate of 10% on the printed price, he sells the article for Rs. 7,040. Find his profit as per cent to the nearest integer.

• A. $42\%$
• B. $40\%$
• C. $37\%$
• D. $47\%$

Answer 1

The correct option is A $42\%$

let the printed price of the article be Rs x

Then according to the statement

$\Rightarrow x+10\%ofx=7040$

$\Rightarrow \frac{10x+x}{10}=7040$

$\Rightarrow \frac{11x}{10}=7040$

$\Rightarrow x=\frac{70400}{11}=6400$

$\therefore$Printed price of the article=Rs.6400

As given shopkeeper buys the article at 70% of its printed price.

$\therefore$For shopkeeper C.P of the article=70% of 6400

$\Rightarrow \frac{70}{100}\times 6400=Rs.4480$

Since he spend Rs. 40 on the transportation of the article

$\therefore$Total cost price$=4480+40=Rs.4520$

The selling price (excluding sales tax)=Printed price =Rs.6400

$\therefore Profit$=6400-4520=Rs.1880$

Profit %=$\frac{1880}{4520}\times 100=41.59=42\%$