Question

The Marked price of a jacket at a dealer's shop is 2400. The dealer allows a discount of 15% to the retailer. As the company's policies the marked price of the retailer should be the same as the dealer's marked price. What SP should the retailer fix for the jacket? What would its final price be if 10% VAT is imposed? What would be the actual gain of retailer?

Ans
2280,2502,240​

Answer 1

2400

2640

360

Explanation:

I am not sure the description is totally clear.

my assumptions are (based on my interpretations of the text) :

the retailer buys from the dealer with 15% discount.

but the retailer has to sell the jacket for the same price as the dealer.

so, both mark the sale price as 2400.

if the customer buys from the retailer, the retailer makes 15% profit (the discount he got from the dealer).

15% = 2400 × 15/100 = 24 × 15 = 360

the retailer makes this profit no matter what other fees or taxes are added.

if the customer buys from the dealer, the dealer makes these 15% and some more (we don't know how much) profit.

now, the final price is to include also 10% VAT

100% = 2400

1% = 2400 / 100 = 24

10% = 24 × 10 = 240

so,

final price = SP + VAT = 2400 + 240 = 2640