A producer supplies merchandise to a distributor at a discount of 20% off the list price, along with an additional 5% surcharge on that discounted price. Subsequently, the distributor sells the items for ₹3,150 above their purchase cost, achieving a gain of 25%. Calculate the original list price of the merchandise.
Correct Answer :
₹15,000
Solution :
The correct answer is ₹15,000.
Let's break down the problem step-by-step to find the original list price of the merchandise.
Step 1: Express the purchase cost in terms of the list price
Let the original list price of the merchandise be .
First, the producer gives a 20% discount on the list price:
Next, an additional 5% surcharge is added on this discounted price:
Step 2: Find the distributor's purchase cost from the gain
The distributor sells the items for ₹3,150 above their purchase cost, which represents a gain of 25% on the purchase cost:
Given that Gain = ₹3,150:
So, the purchase cost of the distributor is ₹12,600.
Step 3: Calculate the original list price
Now, substitute the value of into our first equation:
Thus, the original list price of the merchandise is ₹15,000.
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