Question

A shopkeeper buy an article for Rs. 2,400 from a wholesaler at 20% rebate on its list price. He marks up the list price of the article bought by 10% and then sells it for Rs. 3,498 including sales tax on the marked up price.
Find: (i) the rate of sales tax
        (ii) the shopkeeper’s profit as per cent.

Answer 1

Let the printed price = Rs. y
Discount% = 20%
Cost price = Rs. 2,400
∴ List price – discount = Rs. 2,400
⟹ y − 20% of y = Rs. 2,400
⟹ y − `y/5`=𝑅𝑠.2,400
= `(4y)/5`= 𝑅𝑠.2,400
`=y = Rs.(2,400xx5)/4`= Rs. 3,000
New printed price = Rs. 3,000 + 10% of Rs. 3,000
= Rs. 3,000 + Rs. 300 = Rs. 3,300
Selling price inclusive of sales tax = Rs. 3,498
Sales tax = Rs. 3,498 – Rs. 3,300 = Rs. 198
(i) ∴ Rate of sales tax =`"sales tax"/"sales price"xx100%`

                                 `=198/(3,300)xx100% = 6%`

(ii) Profit = Rs. 3,300 – Rs. 2,400 = Rs. 900

∴ Profit% =`"profit"/"cost price"xx100%=900/(2,400)xx100%=37.5%` Ans