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%?

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% Reply

3%Answer:3%