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Question

The list price of a refrigerator is ₹15,000. It is sold to a retailer after two successive discounts of 32% and 40%. The retailer wants to earn a profit of 45% on his cost after allowing a 49% discount (on its new list price) to the customer. At what price should he list the refrigerator?

The correct answer is
₹17,400

Calculate Retailer's Cost Price (CP)

The initial list price is ₹15,000. Two successive discounts of 32% and 40% are applied to find the retailer's cost price.

  • Price after the first discount (32%):

    $ ₹15,000 \times (1 - \frac{32}{100}) = ₹15,000 \times (1 - 0.32) = ₹15,000 \times 0.68 = ₹10,200 $

  • Price after the second discount (40%):

    $ ₹10,200 \times (1 - \frac{40}{100}) = ₹10,200 \times (1 - 0.40) = ₹10,200 \times 0.60 = ₹6,120 $

So, the retailer's Cost Price (CP) is ₹6,120.

Calculate Retailer's Selling Price (SP)

The retailer wants a 45% profit on his cost price. The selling price is calculated as:

$ SP = CP \times (1 + \text{Profit Percentage}) $

$ SP = ₹6,120 \times (1 + \frac{45}{100}) $

$ SP = ₹6,120 \times (1 + 0.45) $

$ SP = ₹6,120 \times 1.45 $

$ SP = ₹8,874 $

The retailer needs to sell the refrigerator for ₹8,874 to achieve the desired profit.

Determine Retailer's List Price

The retailer allows a 49% discount on his list price to the customer. The selling price (SP) is 51% (100% - 49%) of the retailer's list price (LP).

$ SP = LP \times (1 - \text{Discount Percentage}) $

$ ₹8,874 = LP \times (1 - \frac{49}{100}) $

$ ₹8,874 = LP \times (1 - 0.49) $

$ ₹8,874 = LP \times 0.51 $

To find the list price (LP), we rearrange the formula:

$ LP = \frac{₹8,874}{0.51} $

$ LP = ₹17,400 $

Therefore, the retailer should list the refrigerator at ₹17,400.

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Important Questions from Discount and MP

  1. If a trader marks the price of an article 50 percent more than the cost price and allows a discount of 30 percent, then what is his profit percentage?

  2. Printed price of a mobile is Rs. 6,400. It is sold in Rs. 2,560 with two consecutive discount. If first discount is 20%, then what is the second discount?

  3. A trader decided to mark his goods 15 percent above the cost price and then offered 40 percent discount. What will be the percentage of profit or loss?

  4. On the sale of 20 percent discount, the value of an item is Rs. 760. What was the real value of the item?

  5. What is the total discount applicable if 3 successive discounts of 20%, 10% and 12.5% are applied?

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