Question

Vikash buys a refrigerator at a discount of 20% on the marked price. He spends ₹ 50 on maintenance. If he sells it for ₹ 2100 inclusive of sales tax @ 5% on marked price, then calculate his profit.

• A. 12.81%
• B. 17.89%
• C. 21.21%
• D. 29.29%

Answer 1

The correct option is C 21.21%

Let the Marked Price of refrigerator be $x$.

The Price at which the Vikash buys the refrigerator = $x-\frac{20x}{100}$ = $\frac{80x}{100}$

He spends ₹ 50 on its maintenance.

Sales tax at 5% on MP = $\frac{5x}{100}$

SP is inclusive of sales tax of 5%.

$\therefore$ According to the problem :

$\frac{105x}{100}$ = ₹ 2100

$\Rightarrow$ $x$ = ₹ 2000

$\therefore$ CP for Vikash = $\frac{80x}{100}\times$MP + ₹ 50 = $\frac{80\times 2000}{100}$ + ₹ 50 = ₹ 1600 + ₹ 50 = ₹ 1650

Profit = SP - CP = ₹ 2100 - ₹ 1650 = ₹ 350

Profit % = $\frac{350\times 100}{1650}$
Profit % = 21.21%