The list price of a washing machine is ₹87,200. It is sold to a retailer after two successive discounts of 9% and 50%. The retailer wants to earn a profit of 25% on his cost after allowing a 48% discount (on its new list price) to the customer.
At what price should he list the washing machine?
Correct Answer :
₹95,375
Solution :
The correct option is ₹95,375.
Let's break down the solution step-by-step to understand how we arrive at this answer:
Step 1: Calculate the Cost Price (CP) for the retailer.
The list price of the washing machine is ₹87,200.
The retailer gets two successive discounts of 9% and 50%.
First, applying the 9% discount:
Price after 9% discount = List Price × (1 - 9/100)
Price after 9% discount = 87,200 × 0.91 = ₹79,352
Next, applying the 50% discount on this reduced price:
Cost Price (CP) for the retailer = 79,352 × (1 - 50/100)
Cost Price (CP) = 79,352 × 0.50 = ₹39,676
Step 2: Determine the required Selling Price (SP) for the retailer.
The retailer wants to earn a profit of 25% on his cost price (CP).
Selling Price (SP) = CP × (1 + Profit% / 100)
Selling Price (SP) = 39,676 × (1 + 25/100)
Selling Price (SP) = 39,676 × 1.25 = ₹49,595
Step 3: Calculate the new list price (Marked Price, MP) for the customer.
The retailer wants to sell the machine at the calculated SP after allowing a 48% discount on its new list price (MP).
Selling Price (SP) = MP × (1 - Discount% / 100)
49,595 = MP × (1 - 48/100)
49,595 = MP × 0.52
Solving for MP:
MP = 49,595 / 0.52
MP = ₹95,375
Therefore, the retailer should list the washing machine at ₹95,375.
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