a wholesellor allows a discount of 20% on the list price to a retailor . the retailor sells at 5% discount on the list price . if a customer paid ruppes38 for an article , what profit is made by the retailor ? find also the retailor's percentage profit for giving your answer correct to 2 decimal place.
To find the profit made by the retailer, we need to determine the cost price of the article for the retailer and compare it to the amount paid by the customer.
Let's break down the scenario step-by-step:
1. The wholesaler provides a discount of 20% to the retailer. Hence, the retailer pays 80% (100% - 20%) of the list price.
2. The retailer then sells the article at a 5% discount on the list price. This means the customer paid 95% (100% - 5%) of the list price.
3. Given that the customer paid Rs. 38 for the article, which is 95% of the list price, we can write the equation:
0.95 * list price = Rs. 38
To find the list price, we divide both sides of the equation by 0.95:
list price = Rs. 38 / 0.95
= Rs. 40
Therefore, the list price of the article is Rs. 40.
Next, to calculate the cost price for the retailer, we apply the wholesaler's discount:
cost price for the retailer = 80% of the list price
= 0.8 * Rs. 40
= Rs. 32
Now, let's determine the profit made by the retailer:
profit = amount paid by the customer - cost price for the retailer
= Rs. 38 - Rs. 32
= Rs. 6
The retailer's profit is Rs. 6.
To find the retailer's percentage profit, we divide the profit by the cost price and multiply by 100:
percentage profit = (profit / cost price) * 100
= (6 / 32) * 100
= 18.75%
Therefore, the retailer's percentage profit is 18.75%, correct to two decimal places.