E-commerce
Calculating Selling Price with Different Discounts
Calculating Selling Price with Different Discounts
In business and commerce, understanding how discounts affect the selling price is crucial for pricing strategies. This article will walk you through a specific problem where the selling price changes with a different discount rate. We will also provide a detailed step-by-step explanation and apply it to multiple contexts to ensure a thorough understanding.
Problem Statement
At a 20% discount, the selling price of an article is Rs. 2400. What is the selling price if the discount is 32.5%?
Step-by-Step Solution
Step 1: Calculate the Original Price
To find the original price or marked price of the article, we start with the given information that the selling price (SP) at a 20% discount is Rs. 2400. The formula to find the original price (MP) when the selling price and discount rate are known is:
SP MP - MP × (Discount Rate / 100)
Given:
SP Rs. 2400 Discount Rate 20%Substituting the values into the formula:
2400 MP - MP × (20 / 100)
2400 MP - 0.20MP
2400 0.80MP
Solving for MP:
MP 2400 / 0.80 3000
Step 2: Calculate the New Selling Price
Now that we have the original price, we can calculate the new selling price after a 32.5% discount. The formula for the selling price with a discount is:
SP MP - MP × (Discount Rate / 100)
Given:
MP Rs. 3000 Discount Rate 32.5%Substituting the values into the formula:
SP 3000 - 3000 × (32.5 / 100)
SP 3000 - 3000 × 0.325
SP 3000 - 975 2025
Conclusion
The selling price of the article at a 32.5% discount is Rs. 2025. Understanding how to calculate the original price and then the new selling price under different discount conditions is a fundamental concept in pricing strategies for businesses. This method can be applied to various scenarios, such as calculating discounts, final prices, and determining markup and markdown percentages.