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 41400S.P +15% of S.P =Rs 41400S.P(1+15%)=Rs 41400S.P=Rs 41400/1.15Selling price without VAT =Rs 36000AgainDiscount = 10%M.P =S.P+ Discount % of M.PM.P-Discount% of M.P= S.PM.P(1-Discount%)=Rs 36000M.P(1-10%)=Rs 36000M.P=Rs 36000/0.9Marked Price = Rs 40,000againDiscount =Discount % of M.P=10% of 40000=Rs 4,000AgainProfit=20%For 20% profitCost price = (S.P*100)/(100+profit%)=(36000*100)/(100+20)= Rs 30000For 24% profitselling price = (100+profit%)*C.P/100=(100+24)*30000/100=Rs 37200AgainDiscount = 40000–37200 = Rs2800Discount % = discount/M.P*100%=2,800/40,000* 100 = 7%FinallyDiscount percent to be reduced =10%–7%= 3%