Question

A shopkeeper buys shirts from a producer and sells them at 20\% profit. A customer has to pays Rs. 3186 including 18\% taxes per shirt. At what price did the shopkeeper buy each shirt?

• A. Rs. 2500.00
• B. Rs. 1975.40
• C. Rs. 2250.00
• D. Rs. 2548.80

Hint:

First remove the tax component to determine the actual selling price, then calculate the cost price using the profit percentage.

Answer 1

The Correct Option is C

Step 1: Relating selling price and cost price.
Profit = S.P-C.P
\[\text{Profit} \% = \frac{S.P - C.P}{C.P}\] \[ \text{Profit\%: } 20\% \quad \Rightarrow \quad \frac{\text{SP}}{\text{CP}} = 1.2 \] Step 2: Adjusting for tax. \[ \text{Selling Price (with tax): } 3186 = \text{SP} \times \frac{118}{100}. \] \[ \text{SP} = \frac{3186 \times 100}{118} = 2700. \] Step 3: Calculating cost price. \[ \text{CP} = \frac{\text{SP}}{1.2} = \frac{2700}{1.2} = 2250. \] Hence, the correct option is (3) Rs. 2250.00.