Question

A shopkeeper buys an article at 70% of its printed price. He spends Rs. 40 on transportation of the article. After charging Sales Tax at the rate of 10% on the printed price, he sells the article for Rs. 7,040. Find his profit as a percent to the nearest integer.
A. $42%$
B. $40%$
C. $37%$
D. $47%$

Answer 1

Hint: First, find the printed price of the article. After that, find the price at which the shopkeeper bought the article. Then add the transportation charge to get the total cost price. Now, subtract the total cost price from the printed price to get the profit. After that find the profit percentage and round it to the nearest integer to get the desired result.

Complete step-by-step solution:
Given: - Shopkeeper buys an article at 70% of its printed price.
Spent on transportation = Rs. 40
Sales Tax at the rate of 10% on the printed price.
Selling price = Rs. 7040
Let the printed price of the article be Rs $x$, the shopkeeper purchase price be ${{S}_{p}}$.
Since the Sales Tax is at the rate of 10% on the printed price. Then,
$x+\dfrac{10}{100}x=7040$
Cancel out the factor from the numerator and denominator,
$x+\dfrac{1}{10}x=7040$
Take LCM on the left side,
$\dfrac{10x+x}{10}=7040$
Add the terms in the numerator and multiply the denominator on the right side,
$11x=70400$
Divide both sides by 11,
$x=6400$
So, the printed price is Rs. 6400.
As the shopkeeper buys the article at 70% of its printed price. Then,
${{S}_{p}}=\dfrac{70}{100}\times 6400$
Cancel out the factor from numerator and denominator, then multiply the terms
${{S}_{p}}=4480$
Since he spends Rs. 40 on the transportation of the article. Then,
$T.C.P.=4480+40=4520$
Then the profit is,
$Profit=6400-4520=1880$
So, the profit percent is,
$Profit\%=\dfrac{1880}{4520} \times 100=41.59%$
Since the value after the decimal is greater than 50. So,
$Profit\%=42%$
Thus, the profit percent is 42%.

Hence, option (A) is correct.

Note: Cost Price: The price at which an article is purchased, is called its cost price (C.P.).
Selling Price: Price at which an article is purchased is known as its selling price (S.P.).
Profit or Gain: If SP is greater than CP then the seller is said to have profit or gain.
\[Profit=SP-CP\]
\[Profit\%=\dfrac{Profit}{CP}\times 100\]