A trader allows a discount of 5% to his customers. What price should he mark on an article the cost price of which is Rs.712.50 so as to, make a clear profit of 33 1/3 % on his outlay?
Question
A trader allows a discount of 5% to his customers. What price should he mark on an article the cost price of which is Rs.712.50 so as to, make a clear profit of 33 1/3 % on his outlay?
Solution
Step 1: Calculate the profit amount The trader wants to make a clear profit of 33 1/3 % on his outlay. So, the profit on the cost price of Rs.712.50 would be (33 1/3 / 100) * 712.50 = Rs.237.50
Step 2: Calculate the selling price The selling price would be the cost price plus the profit. So, the selling price would be 712.50 + 237.50 = Rs.950
Step 3: Calculate the marked price The trader allows a discount of 5% to his customers. So, the marked price should be such that even after giving the discount, the trader should get the selling price. Let's assume the marked price is Rs.X. So, X - 5% of X = Selling price => X - 0.05X = 950 => 0.95X = 950 => X = 950 / 0.95 => X = Rs.1000
So, the trader should mark Rs.1000 on the article.
Similar Questions
An article costs Rs.600.What should be the marked price of an article so that after 10% discount,the trader makes 20% profit?Rs.800Rs.950Rs.1100Rs.1040
A merchant marks his goods at Rs. 600 and allows a discount of 25%. If he still gains 11.11%, then the cost price of the article is:
A shopkeeper marked up the price of an article by 40% above cost price and he allows 25% discount on marked price. If shopkeeper earns Rs. 420 as profit, then find his profit (in Rs.) when he allows discount of 20% instead of 25%?
A shopkeeper marked up an article 50% above its cost price and allowed a discount of 16%. If shopkeeper received a profit of Rs 624, then find the profit percentage when shopkeeper sold the article at Rs 2880.
The ratio of marked price to selling price of an article is 5 : 3 and shopkeeper gets a profit of 40%. If shopkeeper sells the article at its marked price, then the difference between cost price and marked price of article is Rs. 400. Find the cost price of the article?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.