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Two stores A and B bought the same product from the company at the same price. Store A marked the price of the product 50% above its cost price and offered two successive discounts of 15% and 10% on the marked price of the product, while store B marked the price of the product 60% above its cost price and offered two successive discounts of 15% and 12% on the marked price of the product. If a customer buys the product from store B, he has to pay Rs. 986 more than that at store A. At what price the two stores bought the product from the company?

Two stores A and B bought the same product from the company at the same price. Store A marked the price of the product 50% above its cost price and offered two successive discounts of 15% and 10% on the marked price of the product, while store B marked the price of the product 60% above its cost price and offered two successive discounts of 15% and 12% on the marked price of the product. If a customer buys the product from store B, he has to pay Rs. 986 more than that at store A. At what price the two stores bought the product from the company? Correct Answer Rs. 20000

Formula Used:

When two successive discounts of x% and y% are offered on a product, total discount = (x + y - xy/100)%

Also, when the price is marked p% above cost price and sold at a discount of q%, profit % = (p - q - pq/100)%

Calculation:

Now,

Store A marked the price 50% above CP & sold at successive discounts of 15% and 10%,

⇒ Total discount offered by store A = (15 + 10 - 150/100) = 25 - 1.5 = 23.5%

⇒ Profit % of store A = (50 - 23.5 - 1175/100) = 50 - 35.25 = 14.75%

Similarly,

Store B marked the price 60% above CP & sold at successive discounts of 15% and 12%,

⇒ Total discount offered by store B = (15 + 12 - 180/100) = 27 - 1.8 = 25.2%

⇒ Profit % of store B = (60 - 25.2 - 1512/100) = 60 - 40.32 = 19.68%

But, the customer has to pay Rs. 986 more at store B,

⇒ Profit of store B - Profit of store A = 986

⇒ (19.68 - 14.75)% of Cost price of product = 986

⇒ 4.93% of Cost price of product = 986

⇒ Cost price of product = 98600/4.93 = Rs. 20000

∴ The stores bought the product from the company for Rs. 20000

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