A wholesaler allows a discount of 25% on the list price to the retailer.

The retailer sells at 5% below the list price.

If the customer pays Rs. 38 for an article what profit is made by the retailer on it?

+1 vote

A wholesaler allows a discount of 25% on the list price to the retailer.

The retailer sells at 5% below the list price.

If the customer pays Rs. 38 for an article what profit is made by the retailer on it?

0 votes

Let the list price be x

Discount = 25%

C.P of retailer = (100-75)x/100 = 3x / 4

The retailer sold the item at Discount= 5% on the list price

Discount = 5%of x = 5x/100

S.P of retailer =(100 - 5)x /100= 95x/100=38 --> x= 40

The C.P of the retailer = 3x/4=(3×40) /4= 30

C.P of the retailer = ₹ 30

Retailer sold it = ₹ 38

Retailer earned a profit = S.P - C.P = (38-30) = ₹ 8

Hence, the Retailer earned a profit =**₹ 8**

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