Question Details

A shopkeeper buys shirts from a producer and sells them at 20% profit. A customer has to pay Rs. 3,186.00 including 18% taxes, per shirt. At what price did the shopkeeper buy each shirt from the producer ?

Options

A

Rs. 2,500.00

B

Rs. 1,975.40

C

Rs. 2,250.00

D

Rs, 2,548.80

Show Answer

Correct Answer :

Option C

Rs. 2,250.00

Solution :

The correct option is Rs. 2,250.00.

To find the price at which the shopkeeper bought each shirt from the producer, we can break down the problem into two main steps:

Step 1: Find the selling price of the shirt before tax
Let the selling price (SP) of the shirt before tax be S.
The customer paid Rs. 3,186.00, which includes a 18% tax on the selling price S.
Therefore, the total price paid by the customer is:
S + ( 18 %  of  S ) = 3186

We can write this as:
S × ( 1 + 0.18 ) = 3186
1.18 × S = 3186

Solving for S:
S = 3186 1.18
S = 2700

So, the selling price of the shirt before tax is Rs. 2,700.00.

Step 2: Find the cost price for the shopkeeper
Let the cost price (CP) at which the shopkeeper bought the shirt from the producer be C.
The shopkeeper sells the shirt at a 20% profit. This means:
S = C + ( 20 %  of  C )

Substitute S = 2700 into the equation:
2700 = C × ( 1 + 0.20 )
2700 = 1.20 × C

Solving for C:
C = 2700 1.20
C = 2250

Thus, the shopkeeper bought each shirt from the producer at Rs. 2,250.00.

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