Question

A showroom offers a \[10%\] discount on a microwave, whose marked price is \[Rs.8,000\] , and also gives a blender worth \[Rs.1,200\] as a complimentary gift with it. Even then the showroom earns a profit of \[20%\] . The cost price per microwave is?

Answer 1

Hint: Firstly calculate the overall discount offered by the showroom. Showroom is offering a discount in two ways, the discount on the marked price and the discount coming from free blender. After that, calculate the selling price of the microwave and your next step is to find the cost price by using the formula of cost price which is in terms of profit percentage.

Complete step-by-step answer:
Before solving the question let’s have some basic knowledge of the term profit and loss. If your cost price \[(C.P.)\] is greater than the selling price \[(S.P.)\] then you are in loss because the price at which you purchase an article is greater than the price at which you sell the article. Similarly, if your cost price \[(C.P.)\] is less than the selling price \[(S.P.)\] then you are in profit. And the question is saying the showroom earns a profit of \[20%\] . This simply means that the cost price which we calculate in this question is always less than marked price i.e. \[Rs.8,000\] . Now we can start solving the question.
In the given question the marked price of a microwave is \[Rs.8,000\]
Now calculate the discount offers by showroom on a microwave which cost \[Rs.8,000\]
 \[Discount=10% of 8,000\]
Now, you have to simplify the above expression, we get:
 \[Discount=\dfrac{10}{100}\times 8,000\]
After solving, we get:
 \[Discount=800\]
But the showroom is also giving a blender of worth \[Rs.1,200\] free of cost. So this price is also added to the discount. So, overall discount offers by the showroom becomes
Overall Discount \[=800+1,200\]
Overall Discount \[=2,000\]
Now, we are able to calculate the original price at which showroom sells the microwave
Selling Price \[(S.P.)=8,000-2,000\]
 \[S.P.=6,000\]
After getting the selling price \[(S.P.)\] we can easily calculate the cost price \[(C.P.)\] of each microwave.
It is given in the question that the showroom is earning a profit of \[20%\] . So, according to the given data we will calculate \[(C.P.)\] .
The formula suitable for this question is:
 \[C.P.=\dfrac{S.P.}{100+\Pr ofit%}\times 100\]
Substitute all the values in the above formula,
 \[
   S.P.=6,000 \\
  \Pr ofit%=20 \\
\]
 \[C.P.=\dfrac{6,000}{100+20}\times 100\]
By solving the above expression, we get:
 \[
   C.P.=\dfrac{6,000}{120}\times 100 \\
  C.P.=1,000\times 5 \\
  C.P.=5,000 \;
\]
Hence, we can conclude that the cost price per microwave is \[Rs.5,000\] .
So, the correct answer is “ \[Rs.5,000\] .”.

Note: In our daily life we either purchase something from a shopkeeper or sell something so, automatically we are related with the concept of profit and loss. By learning the concept of profit and loss you can easily calculate the earnings of the company over a period of time. It helps to judge the performance of any firm.