SOLUTION: Richard Gomes pays 25% custom duty on a computer which costs Rs. 10000 in U.S.A For how much should he mark it , if he desires a profit of 30% after allowing two successive discou

Question 1040639: Richard Gomes pays 25% custom duty on a computer which costs Rs. 10000 in U.S.A For how much should he mark it , if he desires a profit of 30% after allowing two successive discounts of 15% and 10% on the marked price . Find also the selling price correct to nearest rupee.

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
i'm not exactly sure how this works, but i'll give it a shot.

the cost of the computer is 1000 rupees in the usa.
apparently there is a custom charge of an additional 25% to bring the computer into india, so the total cost of the computer is 1000 + .25 * 1000 = 1250 rupees.

he wants a profit of 30%.
therefore his profit needs to be .30 * 1250 = 375 rupees.

let m equal the markup price.

the first selling price is equal to the markup price minus a 15% discount.
the selling price after the first discount is therefore equal to m - .15 * m which is equal to .85 * m.

the selling price after the second discount is equal to the selling price after the first discount minus a 10% discount.
the selling price after the first discount is equal to .85 * m.
the selling price after the second discount is therefore equal to .85 * m - .10 * (.85 * m).
simplify this to get the selling price after the second discount is equal to .85 * m - .085 * m.
simplify this further to get the selling price after the second discount is equal to .765 * m.

the profit is equal to the final selling price minus the cost.
the final selling price is equal to the selling price after the second discount which is equal to .765 * m.

the cost is equal to 1250 rupees.
the profit is equal to 375 rupees.
since the profit is equal to the final selling price minus the cost, this means that 375 = .765 * m - 1250.
add 1250 to both sides of this equation to get 1250 + 375 = .765 * m.
simplify to get 1625 = .765 * m.
divide both sides of this equation by .765 and solve for m to get m = 1625 / .765 = 2124.183007 rupees.

that's the markup price.

the first discount is 15% off of that to get the first selling price of 2124.183007 - .15 * 2124.183007 = 1805.55555... rupees.

the second discount is 10% off of the first selling price to get the second selling price of 1805.55555... - .10 * 1805.55555... = 1625 rupees.

the second selling price is the final selling price.
the profit is equal to the final selling price of 1625 minus the cost of 1250 which is equal to 375 rupees.

the percent profit is equal to the profit divided by the cost which is equal to 375 / 1250 = .3.
multiply this by 100 to get a percent profit of 30%.

the final selling price is 1625 rupees.

the markup price that he started with is 2124.183007 rupees.
round this to the nearest rupee to get the markup price that he started with is 2124 rupees.

this all assumes that his total cost is the initial 1000 rupees plus the custom duty of 25% for a total cost of 1250 rupees.

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