Question

15. a)

b)
A retailer allowed 4% discount on his goods to make 20% profit and sold a
refrigerator for Rs 10,848 with 13% VAT. By how much is the discount to be
increased so that he can gain only 15%?
A supplier sold a scanner machine for Rs 41,400 with 15% VAT after allowing
10% discount on it's marked price and gained 20%. By how much is the discount
percent to be reduced to increase the profit by 4%?

Answer 1

The correct answer is - A)8% B) 3%

Explanation:

A) Let assume:

the cost price of the goods - $y.

the selling price of the goods - $x.

Given: The retailer sold at 4% discount, or 0.96x (100% - 4% = 96%). Since the goods were sold to make 20% profit, therefore it was sold for:

1.2y (100% + 20% = 120%).

Solution:

The refrigerator was sold at 13% VAT at Rs. 10848:

then,

=> 1.2y + 13%(1.2y) = 10848

=> 1.2y + 0.156y = 10848

=> 1.356y = 10848

=> y = 8000

Thus, the cp is Rs 8000.

The selling price is:

=> 0.96x = 1.2y

=> 0.96x = 1.2(8000)

=> x = 10000

The sp is Rs. 10000

For a profit of 15%, that is 1.15(8000) = 9200, the discount is:

(1 - discount)10000 = 9200

1 - discount = 0.92

Discount = 1 - 0.92 = 0.08 or 8%

B) Let C & M as cost price & marked price of the scanner machine respectively.

(1 + 20/100)*C = 41400

or (6/5)*C = 41400

or C = (5/6)*41400

= 34500 (Rs)

(1 - 10/100)*(1 + 15/100)*M = 41400

or (9/10)*(23/20)*M = 41400

or M = (10/9)*(20/23)*41400

= 40000 (Rs)

Let R% as the reduction in the percent in discount

(1 - 10/100 + R/100)*(1 + 15/100)*M

= (1 + 20/100 + 4/100)*C

or (9/10 + R/100)*(23/20)*40000

= (31/25)*34500

or 9/10 + R/100

= (20/23)(31/25)*(345/400)

or R/100 = 0.93 - 0.9 = 0.03

or R = 3%