Respuesta :
Answer:
To make only 12% profit, the discount should be increased to 16%
Step-by-step explanation:
The given information are;
The percentage discount on goods = 10%
The profit made from the sale of the watch = 20%
The amount the watch was sold = Rs.10,710
The percentage VAT included = 13%
Let the recommended selling price of the watch = X
Therefore, we have;
The price after 10% discount = 0.9×X
Which gives;
The amount the watch was sold = Price after 10% discount + Price after 10% discount ×VAT
The amount the watch was sold = 0.9×X + 0.9×X×13% = 0.9×X + 0.9×X×0.13
Rs.10,710 = 0.9×X + 0.9×X×0.13 = 1.017×X
X = Rs.10,170/1.017 = Rs. 10,000
The recommended selling price of the watch = Rs. 10,000
The profit was 20% of selling price which gives;
Profit = Selling price - Cost price = Rs. 9,000 - Rs. X = 0.2 × Rs. X
9000 - X = 0.2×X
9000 = X + 0.2×X = 1.2×X
X = 9000/1.2 = Rs. 7,500
To make only 12% profit, we have;
12% of Rs. 7,500 = 0.12 × Rs.7,500 = Rs. 900
Selling price = Cost price + Profit = Rs. 7,500 + Rs. 900 = Rs. 8,400
Percentage discount from Rs.10,000 to get Rs. 8,400 is given as follows;
Percentage discount = Y%
Therefore;
Y = (10,000 - 8,400)/10000 × 100 = 0.16 × 100 = 16%
Y = 16%
Therefore, to make only 12% profit, the discount should be increased to 16%.
