The cost of manufacture of a tape recorder is ₹ 3500. The manufacturer fixes the marked price 30% above the cost price and allows a discount in such as to get a profit of 5%. Find the discount percentage.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 19.23%.
C.P. = Rs. 3500
The manufacturer marks up the price by 30% above the cost price
M.P. = C.P. + 30% of C.P.
⇒ M.P. = 3500 + 0.3 × 3500
⇒ M.P. = 3500 + 1050
⇒ M.P. = Rs.4550
The manufacturer wants to make a 5% profit on the cost price
Profit = 0.05 × 3500 = Rs.175
⇒ S.P. = C.P. + Profit
⇒ S.P. = 3500 + 175 = Rs.3675
Discount = M.P. - S.P.
⇒ Discount = 4550 - 3675 = Rs.875
⇒ Discount% = (Discount/M.P.) × 100
⇒ Discount% = 875/4550 × 100 = 19.23
Thus, discount% is approximately 19.23%