SOLUTION: A dealer marks his goods 20% above cost,but allows 5% discount to the customer. If he sells an article for ₹228, what does he gain on it?

Question 1133396: A dealer marks his goods 20% above cost,but allows 5% discount to the customer. If he sells an article for ₹228, what does he gain on it?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
profit equals the price you sell something at minus the cost of making and selling it.

if your cost for something was 50 dollars and you sold it for 75 dollars, than your profit is equal to 75 - 50 = 25.

your profit margin would be your profit divided by your cost = 25 / 50 = 50%.

in this problem, the dealer marks his goods 20% over cost, but allows 5% discount to the customer.

if he sells the product for 228, what does he gain on it.

the selling price is 228.

that selling price is 5% below the list price.

if x is the list price, then the equation to find x would be x - .05 * x = 228.

simplify that to get .95 * x = 228.

solve for x to get x = 228 / .95 = 240.

that's the list price.

the list price is 20% above the cost.

if x is the cost, then the equation for that would be 240 = c + .20 * x.

simplify that to get 240 = 1.20 * c

solve for c to get c = 240 / 1.2 = 200.

the cost was 200.

the markup was 20% above that to get a list price of 240.

the discount was 5% to get a discounted selling price of 228.

the vendor made a profit of 228 minus 200 = 28.

that's the gain.

the profit margin, or percent gain would be 28 / 200 = .14 * 100 = 14%.

that would be the selling price minus the cost * 100.

Answer by MathTherapy(10551) (Show Source): You can put this solution on YOUR website!

A dealer marks his goods 20% above cost,but allows 5% discount to the customer. If he sells an article for ₹228, what does he gain on it?

Let cost be C
Then selling price after markup, or before discount is 1.2C
Selling price after discount: 1.2C * .95 = 1.14C
With FINAL selling price given as ₹228, we can say that: 1.14C = 228
C, or cost of goods =
As cost is ₹200 and FINAL selling price is ₹228, gain on sale of goods = (₹28).
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