Charging 30% above its production cost a radio maker puts a label of 286 on a radio as its price. But at the time of selling it, he allows 10% discount on the labelled price. What will his gain be ?
M.P. = 286
Discounted amount = $$\frac{10}{100}$$ * 286 = 28.6
=> S.P. = 286-28.6 = 257.4
Let C.P. = $$x$$
Mark up% = 30%
=> $$\frac{286-x}{x}$$ * 100 = 30
=> $$13x$$ = 2860 => $$x$$ = 220
Profit = S.P. - C.P. = 257.4 - 220
= 37.4
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