Question

Marked price of an article is $Rs.2860$ and rate of VAT is $8\%$. Shopkeeper allows a discount of $20\%$ and still makes a profit of $10\%$. If he spent $4\%$ as overheads, then find the original cost price of the article.

Answer 1

Marked Price $=Rs.2860$

Vat $=8\%$

$\therefore S.P=M.P(1+\frac{vat\%}{100})=2860(1+\frac{8}{100})=Rs.3088.8$

Discount $=20\%$

$\therefore$ Actual $SP=3088.8(1-\frac{20}{100})=2471.04$

Now,

Price without vat $=2860(1-\frac{20}{100})=2288$

Let the cost price be ${}^{\prime }{X}^{\prime }$

Overheads $=4\%$

$\therefore NetC.P=X(1+\frac{4}{100})=1.04XProfit\%=\left(\frac{S.P-C.P}{C.P}\right)\times 100\%ATP,10=\frac{2288-1.04X}{1.04X}\times 100\Rightarrow 10.4X=228800-104X\Rightarrow 114X=228800\Rightarrow X=2000$