Question

A wholesaler sells an article for Rs. 2,700 at a discount of 10% on the printed price to a retailer. The retailer, in turn, raises the printed price of the article by 15% and sells it for Rs. 3,657 which includes sales tax on the new marked price. Find:
(i) the rate of sales tax.
(ii) the profit, as percent, made by the retailer.

Answer 1

Let the printed price be Rs. x.
Discount = 10%
Sale price for the wholesaler = Rs. 2,700
∴ x – 10% of x = 2,700
⟹ 9𝑥10 = 2,700
⟹ x = 3,000
Print price by retailer = 3,000 + 15% of 3,000
                                  `= 3,000+ 15/100xx3,000`
                                   = 3,000 + 450
                                   = 3,450
Sale price by retailer = Rs. 3,657
Sales tax charged by retailer = Rs. 3,657 − Rs. 3,450 = Rs. 207
Rate of sales tax =`"sales tax"/"print price"xx100%`
                           `= 207/(3,450) xx100%`
                            = 6%
Profit made by retailer = Rs. 3,450 – Rs. 2,700 = Rs. 750
Profit% `="profit"/"cost price"xx100`

             `=750/(2,700)xx100%`

               = 27.78%