The list price of a dining table is ₹68000. It is sold to a retailer after two successive discounts of 35% and 7%. The retailer wants to earn a profit of 50% on his cost after allowing a 22% discount (on its new list price) to the customer. At what price should he list the dining table?

1. A

   ₹79050

2. B

   ₹78905

3. C

   ₹79006

4. D

   ₹79245

Appeared in: DSSSB 13 August 2024

Explanation

• First, calculate the retailer's cost price (CP) by applying the two successive discounts of 35% and 7% to the initial list price of ₹68,000. This gives a CP of ₹41,106.
• Next, determine the retailer's target selling price (SP) by adding a 50% profit to the cost price. The SP is ₹41,106 × 1.50 = ₹61,659.
• This selling price of ₹61,659 is the price after the retailer gives a 22% discount on the new list price. Therefore, the SP represents 78% (100% - 22%) of the new list price.
• To find the new list price, divide the selling price by 0.78: ₹61,659 / 0.78 = ₹79,050.

Why Other Options Were Wrong

• Option B: This value likely arises from a miscalculation in one of the steps, such as an error in applying the successive discounts or in the final division to find the list price.
• Option C: This answer is very close to the correct one and could be the result of rounding numbers prematurely during intermediate steps instead of using the exact values throughout the calculation.
• Option D: This incorrect value could result from a conceptual error, such as incorrectly adding the discount percentages (35% + 7% = 42%) instead of applying them sequentially, which would lead to an inaccurate cost price and final answer.

Related Visual

Clinical Relevance

• Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Profit and Loss, Successive Discounts, and Marked Price as background academic context rather than a clinical decision trigger.
• This type of problem is fundamental to understanding retail pricing, business finance, and financial literacy.
• The key principle is that successive percentages (like discounts) are applied sequentially to the updated value, not added together.
• Understanding the relationship between cost price, selling price, marked price, profit, and discount is essential for making informed business decisions and for personal financial planning.

How to Approach the Question

• First, identify all the given values: the initial list price (₹68,000), the successive discounts for the retailer (35% and 7%), the retailer's desired profit (50%), and the discount for the customer (22%).
• Calculate the net cost price for the retailer. Use the formula: CP = Initial Price × (1 - D1/100) × (1 - D2/100).
• Next, calculate the target selling price for the retailer by adding the profit margin to the cost price: SP = CP × (1 + Profit%/100).
• Recognize that this selling price is the amount after the 22% discount is given to the customer. This means SP = New List Price × (1 - 22/100).
• Rearrange the formula to solve for the New List Price: New List Price = SP / (1 - 0.22).
• Perform the final calculation and select the matching option.

Concept Tested & Keywords

• Concept Tested: Profit and Loss, Successive Discounts, and Marked Price
• Stem keywords: list price, dining table, successive discounts, profit, retailer, customer, cost
• Lead-in keywords: At what price

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