A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. If the buyer pays ₹451.44 for the article inclusive of sales tax (under VAT) at 8%, find :
(i) the printed price of the article
(ii) the profit percentage of the retailer.
Solution:
(i) Let the printed price of the article = ₹ 100
Then, the retailer’s cost price
= ₹ 100 – ₹ 15 = ₹ 85
Now, marked price for the retailer
= ₹ 100 + ₹ 10 = ₹ 110
Rate of discount allowed = 5%
