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Question
The catalogue price of an article is Rs.3600 and a manufacturer sells it to the distributor at 20% off the catalogue price. The distributor sells it to the retailer at 10% off the catalogue price. What profit percent is made by the retailer, if he sells the article to a customer at catalogue price? What profit percent is made by the manufacturer, if the catalogue price is 44% above its costs?
Solution
M.P. of the article = Rs.3600
For the distributor,
C.P.
= Rs.3600 - 20% of Rs.3600
= Rs.3600 - Rs.720
= Rs.2880
S.P.
= Rs.3600 - 10% of Rs.3600
= Rs.3600 - Rs.360
= Rs.3240
For the retailer,
C.P. = Rs.3240
S.P. = Rs = 3600
∴ Gain
= S.P. - C.P.
= Rs.3600 - Rs.3240
= Rs.360
∴ Gain %
= `"gain"/"C.P." xx 100`
= `(360)/(3240) xx 100`
= 11.1%
If catalogue price is 44% above its costs, then
`"M.P."/"C.P." = 1 + (44)/(100)`
⇒ `(3600)/"C.P." = (144)/(100)`
⇒ C.P. = `(100 xx 3600)/(144)`
= Rs.2500
S.P. for the manufacturer
= M.P. - Discount
= Rs.3600 - 20% of Rs.3600
= Rs.3600 - Rs.720
= Rs.2880
Gain
= S.P. - C.P.
= Rs.2880 - Rs.2500
= Rs.380
∴ Gain %
= `"gain"/"C.P." xx 100`
= `(380)/(2500) xx 100`
= 15.2%.
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