a retailer buys an article at a discount of 15% on printed price from a wholesaler. He makes up the price by 10%. Due to competition in the market, he allows a discount of 5% to buyer. If the buyer pays rupees 451.44 for the article inclusive of sale tax at 8% then find the profit percentage of retailer and the printed price of an article

Answer 1

wholesaler's printed price: p
retailer's cost: 0.85p
price after markup: 0.85p*1.10 = 0.935p
price after buyer discount: 0.935p * 0.95 = 0.88825p
buyer pays .88825p*1.08 = 451.44
So, p = 470.59

price/cost for retailer is

.88825p/.85p = 1.045

so he made 4.5%