Question

A supplier sold a scanner machine for Rs 41,400 with 15% VAT after allowing 10% discount on it's marked price and gained 20%. By how much is the discount percent to be reduced to increase the profit by 4%?​

Answer 1

3%

Answer:

Selling price with VAT {15%} = Rs 41400

S.P +15% of S.P =Rs 41400

S.P(1+15%)=Rs 41400

S.P=Rs 41400/1.15

Selling price without VAT =Rs 36000

Again

Discount = 10%

M.P =S.P+ Discount % of M.P

M.P-Discount% of M.P= S.P

M.P(1-Discount%)=Rs 36000

M.P(1-10%)=Rs 36000

M.P=Rs 36000/0.9

Marked Price = Rs 40,000

again

Discount =Discount % of M.P

=10% of 40000

=Rs 4,000

Again

Profit=20%

For 20% profit

Cost price = (S.P*100)/(100+profit%)

=(36000*100)/(100+20)

= Rs 30000

For 24% profit

selling price = (100+profit%)*C.P/100

=(100+24)*30000/100

=Rs 37200

Again

Discount = 40000–37200 = Rs2800

Discount % = discount/M.P*100%

=2,800/40,000* 100 = 7%

Finally

Discount percent to be reduced =10%–7%= 3%