Friday, August 29, 2014

profit and loss

A shopkeeper buys an article at a rebate of 20% on the printed price. He spends Rs 100 on the transportation of the article. After charging a sales tax of 6% on the printed price, he sells the article at Rs 1060. Find the profit percentage.



Answer:

if the printed price is P.
then CP = 0.8P
Actual cost = 0.8P + 100
sales tax = .06P
After tax value of sales = P + .06P = 1.06P = 1060
therefore P = 1000
Actual cost = 0.8 x 1000 + 100 = 900
profit % =100 x  (1000 - 900)/ 900 = 11.11%

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