Question Details

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.

Options

A

₹17,500

B

₹15,000

C

₹19,200

D

₹20,480

Show Answer

Correct Answer :

Option B

₹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 L.

First, the producer gives a 20% discount on the list price:
Discounted Price=L-0.20L=0.80L

Next, an additional 5% surcharge is added on this discounted price:
Purchase Cost (C)=0.80L+(0.05×0.80L)
Purchase Cost (C)=0.80L×1.05=0.84L

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:
Gain=25% of C=0.25C

Given that Gain = ₹3,150:
0.25C=3150
C=31500.25=12600

So, the purchase cost of the distributor is ₹12,600.

Step 3: Calculate the original list price

Now, substitute the value of C into our first equation:
0.84L=12600
L=126000.84=15000

Thus, the original list price of the merchandise is ₹15,000.

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