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2014-07-28T12:10:33+05:30
Actual profit is Rs 264

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The whole statement sum would be---
Let, CP of the goods be Rs. x.
Marked Price = Rs.{x + (40% of x)} = Rs. x + 2x/5 = Rs. 7x/5
Discount % = 5%
Discount = 5% of Rs. 7x/5 = Rs.7x/100
SP of goods = Rs 1064
As per question-
Rs. 1064 = Rs. (7x/5 - 7x/100)
=>1064 = (140x - 7x) / 100
=>106400 = 133x
=> x = 106400 / 133 = Rs.800
Profit = SP - CP = Rs. (1064 - 800) = Rs. 264
Actual profit is Rs. 264.
The best explanation
2014-07-28T14:00:00+05:30

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Markup Price = MP     CP cost price      SP = sale Price 
Total Cost of buying = n * CP,    if n items are in the shop.
Total Sales amount = n * SP ,  n items are sold

MP = 1.40 CP
SP = 0.95 MP = 1.4 * 0.95 CP
Total sales amount = n SP = 1.4 * 0.95 * n * CP  = 1.4 * 0.95 * Total Cost
                       =>  1064 = Total Cost * 1.4 * 0.95
     Total cost  = Rs 800
   Profit = 1064 - 800 = Rs 264


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