Multiple choice

A radio markes the label price of Rs 286 so as to gain 30 percent more than manufacturing cost. But when selling it, he gives a discount of 10 percent on the label price. How much would he gain?

  1. Rs. 257.40

  2. Rs. 254.40

  3. Rs. 198

  4. Rs. 37.40
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Manufacturing cost = Rs 286/1.3 = Rs 220. Selling price after 10% discount = Rs 286 × 0.9 = Rs 257.40. Gain = Rs 257.40 - Rs 220 = Rs 37.40. The gain is the difference between actual selling price and cost, not the margin percentage.

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