Question

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

• A. 35%
• B. 52%
• C. 48%
• D. 38%

Answer 1

The correct option is D

38%

Let the printed price be x.

After rebate of $30\%$, C.P of article = 0.7x

Total investment on the article = (0.7x + 40)

After charging sales tax of $7\%$ on printed price, the price would be 1.07x = 1.07x

So, 1.07x = Rs. 856

x = Rs. 800

So, C.P = 0.7 $\times$ 800 + 60 =Rs. 620

Profit = Rs.(856 - 620) = Rs. 236

So, profit%= $\left(\frac{236}{620}\right)$ $\times$ $100\%$ = $38\%$