Question

A shopkeeper buys an article at 70% of its printed price. He spends Rs. 40 on transportation of the article. After charging sales tax at the rate of 10% on the printed price, he sells the article for Rs. 7,040. Find his profit as per cent to the nearest integer.

Answer 1

Let the printed price be Rs. x
Rate of sales tax = 10%
Selling price inclusive of sales tax = Rs.7,040
∴ x + 10% of x = 7,040
⟹ X + `10100` × 𝑥 =7,040
⟹ `(11x)/10`=7,040
⟹ x = 6,400
Cost price for shopkeeper = 70% of 6,400
= `70/100`×6,400
= 4,480
Expense on transportation = Rs.40
Actual cost price = Rs. 4,480 + Rs. 40 = Rs. 4,520
Profit taken by shopkeeper = Rs. 6,400 − Rs. 4,520 = Rs. 1,880
Profit% `="profit"/"cost price"xx100%`
`=(1,880)/(4,520)xx100%`
= 41.59
= 42 (nearest integer)
Shopkeeper’s makes a profit of 42%