Question

An almirah is listed at Rs 1000. A retailer buys it with two successive discounts of 10% and 20% for cash. The other expenses are 10% of the cost of the almirah. At what price should he sell to earn a profit of 15%?

• A. Rs $910.80$
• B. Rs $900.50$
• C. Rs $910.50$
• D. Rs $980.50$

Answer 1

The correct option is A Rs $910.80$

Listed price of almirah = 1000 Rs

Hint : $Priceafterx\%discount=MarkedPrice-MarkedPrice\times \frac{x}{100}$

After discount of 10%, $Price=1000-1000\times \frac{10}{100}=900Rs$

After another discount of 20%, $Price=900-900\times \frac{20}{100}=720Rs$

This is the cost price of retailer.

Other expences = 10% of cost of almirah = $720\times \frac{10}{100}=72Rs$

So, Overall CP = CP + Other expenses = $720+72=792$ Rs

Now, retailer wants a profit of 15%.

Hence, $SP=CP+CP\times \frac{15}{100}=792+792\times \frac{15}{100}=792+118.8=910.8Rs$