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:

the retailer has to sell it for the same price as the dealer.

so, both mark it for 2400 sale price.

if a customer buys it at the retailer, the retailer makes the 15% discount he got from the dealer as profit.

2400 = 100%

1% = 2400/100 = 24

15% = 24×15 = 360

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

the final price is then including 10% VAT

2400 = 100%

10% = 24×10 = 240

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