Question

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

• A. $42\frac{1}{2}\%$
• B. $39\frac{1}{3}\%$
• C. $39\frac{1}{8}\%$
• D. $42\frac{2}{3}\%$

Answer 1

The correct option is D

$42\frac{2}{3}\%$

Let the printed price of the article be ₹ x.

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

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

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

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

Hence, printed price = ₹ 800.

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 = Selling price - Actual cost price = ₹ 856 - ₹ 600 = ₹ 256.

Profit percent $=\left(\frac{profit}{costprice}\right)\times 100\%=\left(\frac{256}{600}\right)\times 100$
$=42\frac{2}{3}\%$