Multiple choice

A retailer buys an item at a wholesale price of Rs. 300 per unit. To promote sales, he offers a series of discounts: 15% on the marked price, followed by an additional 20%. If the retailer still wants to achieve a profit margin of 20% on the wholesale price after all discounts, what should be the approximate marked price to the nearest rupee?

  1. Rs. 480

  2. Rs. 500

  3. Rs. 510

  4. Rs. 530

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Wholesale price is 300, so target selling price for 20% profit is 360. Let M be the marked price. After 15% and 20% discounts, the selling price is M * 0.85 * 0.80 = 0.68M. Setting 0.68M = 360 gives M = 360 / 0.68 = 529.41, which rounds to 530.

AI explanation

To achieve a 20% profit on the wholesale price of 300, the target selling price is 360. Let the marked price be M; applying the successive discounts of 15% and 20% means the selling price is M times 0.85 times 0.80, or 0.68 times M. Setting 0.68 times M equal to 360 gives M equals 529.41, which rounds to 530.

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