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Question

A shopkeeper buys shirts from a producer and sells them at 20% profit. A customer has to pay ₹3,186.00 including 18% taxes, per shirt. At what price did the shopkeeper buy each shirt from the producer?

The correct answer is
₹2,250.00

The problem asks for the price at which the shopkeeper bought the shirts from the producer. We are given the final price paid by the customer, the tax rate, and the shopkeeper's profit percentage.

Calculate Selling Price Before Tax

The customer pays ₹3,186.00, which includes an 18% tax. Let the selling price before tax be denoted by $SP_{no\_tax}$.

The final price is calculated as: $SP_{no\_tax} \times (1 + \text{Tax Rate})$

Therefore, $SP_{no\_tax} \times (1 + 0.18) = 3186.00$

$SP_{no\_tax} \times 1.18 = 3186.00$

To find the selling price before tax:

$SP_{no\_tax} = \frac{3186.00}{1.18} = 2700.00$

So, the shopkeeper's selling price (before tax) was ₹2,700.00.

Determine Purchase Price

The shopkeeper sells the shirts at a 20% profit. This means the selling price ($SP_{no\_tax}$) is 20% higher than the purchase price ($CP$).

The relationship is: $CP \times (1 + \text{Profit Rate}) = SP_{no\_tax}$

$CP \times (1 + 0.20) = 2700.00$

$CP \times 1.20 = 2700.00$

To find the purchase price:

$CP = \frac{2700.00}{1.20} = 2250.00$

The shopkeeper bought each shirt from the producer for ₹2,250.00.

Final Answer Summary

  • Selling Price including 18% tax = ₹3,186.00
  • Selling Price before tax = ₹2,700.00
  • Shopkeeper's Profit = 20%
  • Shopkeeper's Purchase Price = ₹2,250.00
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Important Questions from Profit and Loss

  1. Rohit buys 8 pens and 4 pencils for Rs. 2400. He sells pencils at a profit of 20 percent and pens at the loss of 10 percent. If his overall profit is Rs. 240, then what is the sum of the cost price of one pen and one pencil?

  2. A man sells a car to his friend at the loss of 10 %; who in return sells it for Rs. 54000 making a profit of 20 %. What was the initial value of the car?

  3. An article was sold at a loss of 24%. If it were sold for Rs. 1,596 more, then there would have been a gain of 18%, The cost price of the article is:

  4. The cost price of an article is Rs.6,450. If it sold at a profit 16%, how much would be its selling price?

  5. If the selling price of 7 articles is equal to the cost price of 6 articles, then what is the percentage loss?

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