Question

A shopkeeper buys an article at a rebate of $30\%$ on the printed price. He spends ₹40 on transportation and after charging sales tax at the rate of $7\%$ on the printed price, he sells the article for ₹856. Find his profit percentage.

• A. $33\frac{1}{2}\%$
• B. $35\frac{1}{3}\%$
• C. $39\frac{1}{8}\%$
• D. $33\frac{1}{3}\%$

Answer 1

The correct option is D

$33\frac{1}{3}\%$

Let the printed price of the article be ₹x

$\text{Sales Tax}=7\%\text{of}₹x=\left(\frac{7}{100}\right)\times x=₹\frac{7x}{100}.$

$\text{Selling price}=₹x+₹\frac{7x}{100}=₹\frac{107x}{100}.$

As per question, $\frac{107x}{100}=856$

$\text{Or}x=\frac{856\times 100}{107}=800$

Hence, printed price = ₹ 800.

$\text{Rebate}=30\%$ of ₹800 $=\left(\frac{30}{100}\right)\times ₹800=₹240$

Cost price of the article = ₹800 - ₹240 = ₹560

Overhead = cost of transportation = ₹40

Actual cost price = ₹560 + ₹40 = ₹600.

Profit = Printed price - Actual cost price = ₹800 - ₹600 = ₹200.

$\text{Profit percent}=\left(\frac{\text{profit}}{\text{cost price}}\right)\times 100\%=\left(\frac{200}{600}\right)\times 100$

$=\frac{100}{3}\%=33\frac{1}{3}\%$