Question

rohit marks his goods at 40% above the cost price but allows a discount of 5% on cash payment to his customers. What actual profit does he make if he recieves rs 1064 after allowing the discount?

Answer 1

Goods are marked 40% above cost price but 5% discount is given.
Therefore, total profit = (40 - 5)%
= 35%
Let the cost price be 'x.'
So, (35% of x) + x = 1064
(
`(35)/(100)`*x) + x = 1064

`(7x)/(20)` + x = 1064

`(7x)/(20) + (20x)/(20)` = 1064

`(27x)/(20)` = 1064
Therefore:
27x = 1064*20
27x = 21,280
x =
`(21280)/(27)`
x = Rupees 788.14
Cost price is Rs. 788.14
Profit = 35% of 788.14

`(35)/(100)*788.14`
Total profit = Rupees 275.849