Question 113

Charging 30% above its production cost a radio maker puts a label of 286 on a radio as its price. But at the time of selling it, he allows 10% discount on the labelled price. What will his gain be ?

Solution

M.P. = 286

Discounted amount = $$\frac{10}{100}$$ * 286 = 28.6

=> S.P. = 286-28.6 = 257.4

Let C.P. = $$x$$

Mark up% = 30%

=> $$\frac{286-x}{x}$$ * 100 = 30

=> $$13x$$ = 2860 => $$x$$ = 220

Profit = S.P. - C.P. = 257.4 - 220

= 37.4

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