Question

a shopkeeper allows 10% discount on his goods to make 20% profit, if he sold a watch for Rs.10170 with 13% vat, by what percent is the discount to be increased to make only 12% profit

Answer 1

To determine the increased discount percentage for a shopkeeper to make a 12% profit instead of 20%, we first find the cost price of the watch. Then calculate the new selling price for a 12% profit and compare it to the original discounted price to identify the new discount percentage.

Step-by-step explanation:

The question involves calculating the required increase in discount to achieve a certain profit margin, specifically for a scenario in which a shopkeeper is selling goods with a known discount and profit margin. To solve this, we need to first determine the cost price of the watch and then find the new selling price that gives a 12% profit, after which we can calculate the new discount percentage.

Let's denote the original cost price as 'CP'. With a 20% profit, the selling price (SP) before VAT and discount is:

SP = CP * (1 + 20%)

The given selling price after a 10% discount and 13% VAT is Rs.10170. So, without the VAT, the price is:

SP before VAT = 10170 / (1 + 13%)

From SP after 10% discount, we can calculate the CP as:

CP = (SP before VAT) / (1 + 20%)

Next, we calculate the new selling price to achieve a 12% profit:

New SP = CP * (1 + 12%)

Now, to find the required new discount percentage, we can set up the equation:

New discounted price with 13% VAT = New SP * (1 - new discount percentage) * (1 + 13%)

And solve for the new discount percentage.

Answer 2

16% of MP

Step-by-step explanation:

Key concepts to learn :

Discount is always applied on marked price.

Profit = SP - CP

VAT is applied on Selling Price

SP = 10170/113 x 100 = 9000

If profit is 20% then :

CP = 9000/120 x 100 = 7500

MP = 9000/90 x 100 = 10000

For 12% profit, SP = 7500 x 112/100 = 8400

=> SP = 8400/10000 x 100 = 84% of MP

=> Discount = 16% of MP