Question

A retailer allowed 4%. discount on her his

goods to make 20 %profit and sold a refrigerator
for Rs.10848 with 13%. VAT . By how much
is the discount percent to be increased so that
she lhe gained only 15 % profit ?​

Answer 1

8%

Explanation:

Let the cost price of the goods be $y. Let us assume the selling price of the goods is $x. The retailer sold at 4% discount, this means it was sold for 0.96x (100% - 4% = 96%). Since the goods was sold to make 20% profit, therefore it was sold for 1.2y (100% + 20% = 120%).

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

1.2y + 13%(1.2y) = 10848

1.2y + 0.13(1.2y) = 10848

1.2y + 0.156y = 10848

1.356y = 10848

y = 8000

The cost price is Rs 8000.

The selling price is:

0.96x = 1.2y

0.96x = 1.2(8000)

x = 10000

The selling price 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

Discount = 8%