Question

A shopkeeper buys an article for $\text{Rs.}1,500$ and spends $20\%$ of the cost on its packing, transportation, etc. Then he marks the article at a certain price. If he sells the article for $\text{Rs.}2,452.50$ including $9\%$ Sales Tax on the price marked, find his profit percent.

• A. $13\%$
• B. $18\%$
• C. $25\%$
• D. $30\%$

Answer 1

The correct option is C $25\%$

Let the marked price of the article be $x.$

Shopkeeper sell the article after including $9\%$ sales tax,

$x+\frac{9x}{100}=2452.50$

$\Rightarrow \frac{109x}{100}=2452.50$

$\Rightarrow x=\frac{2452.50\times 100}{109}$

$\Rightarrow x=\text{Rs.}2250$

Therefore marked price of the article is equal to $\text{Rs.}2250.$

Since, the shopkeeper buys the article for $\text{Rs.}1500$ and spends $20\%$ of the cost as overheads,

$\therefore$ Total cost price of the article $=\text{Rs.}1500+20\%\text{of}\text{Rs.}1,500$

$=\text{Rs.}1500+\text{Rs.}300$

$=\text{Rs.}1,800$

Now,

Profit $=$ Selling price $-$ Total cost price

$=\text{Rs.}2250-\text{Rs.}1800$

$=\text{Rs.}450$

Profit % $=\frac{450}{1800}\times 100$

$=25\%$