Question

Question #e3826

Answer 1

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

Explanation:

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.