Multiple choice

A wholesaler allows a discount of 20% on the list price to a retailer. The retailer sells at 5%discount on the list price. If a customer paid Rs. 114 for an article, what profit is made by the retailer ? Find, also, the retailer's percentage profit on his cost.

  1. Rs. 20; 19.75%

  2. Rs. 18; 18.75%

  3. Rs. 22; 20.75%

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let List Price = L. Retailer buys at 0.8L. Retailer sells at 0.95L. Given 0.95L = 114, so L = 120. Retailer cost = 0.8 * 120 = 96. Retailer profit = 114 - 96 = 18. Profit % = (18 / 96) * 100 = 18.75%.

AI explanation

If the customer paid Rs. 114 at a 5% discount on the list price, the list price equals 114 divided by 0.95, which is Rs. 120. The retailer's cost price is 80% of 120, which equals Rs. 96, yielding a profit of 114 minus 96, or Rs. 18. The profit percentage equals 18 divided by 96, resulting in 18.75%.

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