Question #e3826

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Answer 1 · 2017-12-20T12:04:39

The dealer must mark the computer 30% above the cost price.

The dealer needs to give a discount of 5%,

$therefore$ Selling price (SP) = Marked price(MP) - Discount:

$=>SP = MP - 5/100 xx MP$ ......... ( $because$ discount is 5%)

$=> SP = MP (1-0.05)= 0.95xx MP$

$=> SP = 0.95 xxMP$ ..... equation(1)

He wants a profit of 23.5 % on the Cost price (CP):

So he needs to sell it for :

$SP = CP + 23.5/100 xx CP$

$=> SP = CP(1+ 0.235)$

$=> SP = 1.235xx CP$ ........ equation (2)

Equating (1) and (2):

$1.235xx CP = 0.95xx MP$

$=> MP = 1.235/0.95 xxCP$

$=> MP = 1.3 xxCP$

$=> MP =CP(1 + 0.3 )$

$=> MP = CP + 30/100 xx CP$

So the dealer must mark the computer 30% above the cost price.

$ul(Cross- check)$ :

Let CP = 100
MP will be 130

After giving Discount 5% ,
$SP = 130- 5/100 xx 130 = 130- 6.5$

$therefore SP = 123.5$ where CP was 100.

So he gets 23.5 % profit.