Multiple choice

A wholesaler sells an article for Rs. $2,700$ at a discount of $10\%$ on the printed price to a retailer. The retailer, in turn, raises the printed price of the article by $15\%$ and sells it for Rs. $3,657$ which includes Sales Tax on the new marked price. Find: (i) the rate of Sales Tax, (ii) the profit, as per cent, made by the retailer.

  1. (i) $6\%$        (ii) $27.78\%$
  2. (i) $5\%$        (ii) $7.78\%$
  3. (i) $7\%$        (ii) $27.78\%$

  4. None of these
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A Correct answer
Explanation

Retailer buys at 2700. Printed price = 2700 / 0.9 = 3000. New marked price = 3000 * 1.15 = 3450. Sales tax = 3657 - 3450 = 207. Tax rate = 207 / 3450 = 6%. Profit = 3450 - 2700 = 750. Profit % = (750 / 2700) * 100 = 27.78%.

AI explanation

The wholesaler sells the article for Rs. 2700 after a 10 percent discount, so the original printed price is 2700 divided by 0.90, which is Rs. 3000. The retailer raises this marked price by 15 percent, making the new marked price 3000 multiplied by 1.15, which equals Rs. 3450. Since the final selling price including sales tax is Rs. 3657, the sales tax is 3657 minus 3450, equaling Rs. 207; applying the sales tax rate formula gives (207 divided by 3450) multiplied by 100, which is 6 percent. The retailer's cost price is Rs. 2700 and the selling price before tax is Rs. 3450, so the profit is 750; applying the profit percentage formula gives (750 divided by 2700) multiplied by 100, which equals 27.78 percent.

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