A retailer buys an articlr from a wholesalerbat a discountvof 15% on the printed...

Questions

September 2021 1 48 Report

A retailer buys an articlr from a wholesalerbat a discountvof 15% on the printed price. He marks UP its printed price by 10%. Due to competition in the market, he allows a discount of 5% to the buyer. If the buyer pays rs.6771.60 for the article inclusive of 8% VAT, find:
1. The printed price of article
2. Profit percent of retailer
3. VAT paid by retailer

Answers & Comments

Golda

Verified answer

Solution:-
1) Calculation of Printed Price :

Let the printed price of the article be Rs. 'x'
Then the marked price of the article = x + 10 % of x
= x + x/10
Marked price = Rs.11x/10
Discount offered by the retailer = 5 %
Selling price of the article excluding VAT
= 11x/10 - 5 % of 11x/10
= 11x/10 - 11x/200
Selling price of articla excluding VAT = Rs. 209x/200
Selling price of the article including VAT
= 209x/200 + 8 % of 209x/200
⇒ 209x/200 + 209x/2500 = Rs. 6771.6
⇒ 5643x/5000 = 6771.6
⇒ x = (6771.6*5000)/5643
⇒ x = 33858000/5643
⇒ x = Rs. 6000
So, the printed price of the article is Rs. 6000
Now,
Cost price of the article = Printed price - discount offerred by the wholesaler
= (6000*15)/100
= Rs.900
Cost Price = Rs. 6000 - Rs. 900
C. P. = Rs. 5100
Now,
2) Calculation of Profit Percentage :

Profit = 6771.6 - 5100
Profit % = Rs. (1671.6*100)/100
Profit % = 32.78 %

Now,
Marked Price = 6000 + (6000*10)/100
= 6000 + 600
Marked Price = Rs. 6600

Now,
Selling Price excluding VAT
6600 - 5 % of 6600
6600 - 330
Selling Price excluding VAT = Rs. 6270

3) Amount of VAT
⇒ (6270*8)/100
= Rs. 501.60