Calculating the Marked Price of Discounted Articles

Introduction:

Understanding how to calculate the marked price of articles after a discount is crucial in the retail and sales industry. This guide will walk you through a practical example to help you grasp the concept and apply it to your own scenarios.

The Problem:

Two articles were purchased for Rs. 37.40 after a discount of 15%. What was the marked price of each article?

Step-by-Step Solution:

The discount represents the percentage off the original price, which in this case is 15%. Therefore, the customer paid 85% of the original or marked price of the articles.

Step 1: Calculate the Total Marked Price

We know that 85% of the total marked price is Rs. 37.40.

85% of the total marked price Rs. 37.40

To find 100% of the total marked price, we set up the equation:

37.40 / 0.85 Rs. 44

Therefore, the total marked price of both articles is Rs. 44.

Step 2: Calculate the Marked Price of Each Article

Now that we have the total marked price, we simply divide it by 2 to find the marked price of each article:

44 / 2 Rs. 22

Thus, the marked price of each article is Rs. 22.

Explanation of the Formula

The formula used here is based on the relationship between the discount and the marked price:

(1 - (Discount Percentage / 100)) * Marked Price Cost Price

In this case:

(1 - (15 / 100)) * Marked Price 37.40

Solving for the marked price gives us:

0.85 * Marked Price 37.40

Marked Price 37.40 / 0.85

Marked Price 44

And as stated earlier, the marked price of each article is Rs. 22.

Conclusion:

Calculating the marked price of discounted articles is an essential skill for retail operations. Understanding these calculations helps in pricing strategies, inventory management, and overall profitability.

Related Keywords:

discounted articles mark up price discount calculation

Additional Information:

For further reading on retail math, you can explore the following resources:

The Retail Math Blog The Cost Plus Method Understanding Markdowns and Markups