Question

What price should a shopkeeper Gopal mark on a chair which costs him \[Rs.1200\] so as to gain \[12\% \] after allowing a discount of \[16\% \]

Answer 1

Hint: Marked price is the price set by the seller on the label of the article. It is a price at which the seller offers a discount. After the discount is applied on the Marked price, it is sold at a reduced price known as the selling price.
To cope with the competition in business and boost the sale of goods, shopkeepers offer discounts to customers. The rebate or the offer given by the shopkeepers to lure the customers is called a discount. Discount is always calculated on the Marked price of the article.
Discount = Marked Price - Selling Price

Complete step-by-step answer:
Given that the value of discount allowed is, \[16\% \]
The value of the total profit gained after the discount; Gain allowed \[12\% \]
The price at the time of purchase or the cost price, \[CP = 1200\]
The gain is marked at \[12\% \], the total value must be increased by \[12\% \]
\[\left( {\dfrac{{112}}{{100}}} \right) \times 1200 = 1344\] is what we arrive at, now we need to find that value at which, when offered a discount of \[16\% \] overall profit is \[12\% \]
Now, the listed price is set to a value \[X\] so as to receive a total profit of \[12\% \] after the discount
\[100 - 16 = 84\]
\[\dfrac{{84}}{{100}} \times X = 1344\]
Now we solve for \[X\] and get
\[X = \dfrac{{1344 \times 100}}{{84}} = 1600\]
Hence, we conclude that Gopal should sell the chair at \[Rs.1600\] in order to get a profit of \[12\% \] after leaving a discount of \[16\% \] for the chair.
So, the correct answer is “Option B”.

Note: Profit and loss are the terms used to identify whether a deal is profitable or not. We use these terms very often in our daily lives. If the selling price is greater than the cost price, then the difference between the selling price and cost price is called profit. If the selling price is less than the cost price, then the difference between the cost price and the selling price is called loss. The price at which a product is purchased is called its cost price. The price at which a product is sold is called its selling price.