A retaller purchased radio sets at the rate of 400 each from a wholesaler. He raised the price by 30% and then allowed a dis count of 8% on each set. His prof it will be

Options

A. (A) 19
B. (A) 78.4
C. (A) 22
D. (A) 19.6

Answer

Let's solve the problem step by step.

### Step 1: Determine the Cost Price (CP)
The retailer purchased each radio set at the rate of Rs 400.

**Cost Price (CP) = Rs 400**

**Hint:** The cost price is the initial amount paid for the item before any markup or discount.

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### Step 2: Calculate the Marked Price (MP)
The retailer raised the price by 30%. To find the marked price, we calculate 30% of the cost price and add it to the cost price.

**Calculation:**
- 30% of CP = 30/100 * 400 = Rs 120
- Marked Price (MP) = CP + 30% of CP = 400 + 120 = Rs 520

**Hint:** The marked price is the price after applying the markup percentage to the cost price.

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### Step 3: Calculate the Selling Price (SP) after Discount
The retailer allowed a discount of 8% on the marked price. To find the selling price, we calculate 8% of the marked price and subtract it from the marked price.

**Calculation:**
- 8% of MP = 8/100 * 520 = Rs 41.6
- Selling Price (SP) = MP - 8% of MP = 520 - 41.6 = Rs 478.4

**Hint:** The selling price is the final price after applying the discount to the marked price.

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### Step 4: Calculate the Profit
Profit is calculated as the difference between the selling price and the cost price.

**Calculation:**
- Profit = SP - CP = 478.4 - 400 = Rs 78.4

**Hint:** Profit is the amount earned after selling the item, calculated by subtracting the cost price from the selling price.

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### Final Answer
The profit made by the retailer on each radio set is **Rs 78.4**.

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