Question

A furniture manufacturer sells a dining table set to a showroom at a 25% discount on the marked price, but adds a 10% handling fee on the discounted price. The showroom then sells the set for ₹4500 more than what they paid, thereby earning a profit of 30%. At what price had the manufacturer marked the dining table set?

• A. ₹15000.00
• B. ₹18181.82
• C. ₹19500.00
• D. ₹17250.00

Answer 1

Answer:

B. ₹18181.82

Let the marked price (MP) of the furniture be (x).

Step 1: Manufacturer’s selling price to showroom

He gives a 25% discount, so:

$\text{Discounted price} = 75\% \text{ of } x = 0.75x$
He then adds a 10% handling fee on this discounted price:

$\text{Final selling price to showroom} = 0.75x \times 1.10 = 0.825x$

So, showroom’s cost price (CP) = (0.825x)

Showroom’s selling price

Let showroom profit = 30%

$\text{SP} = 1.30 \times 0.825x = 1.0725x$

Step 3: Given condition

Showroom sells it for ₹4500 more than it paid:

$\text{SP} = 0.825x + 4500$

So,
$1.0725x = 0.825x + 4500$

Solve

$1.0725x - 0.825x = 4500$
$0.2475x = 4500$
$x = \frac{4500}{0.2475} = 18181.82$