Profit and Loss — A washing machine is listed at ₹ 10000 with successive discounts of 10% and 20%. The dealer then spends 10% of his purchase cost on transport. At what price should he sell to earn a 10% profit overall?

Introduction / Context: This problem combines successive discounts with an additional expense (transport) and a target profit on the total effective cost. It tests multi-step percentage handling.

Given Data / Assumptions:

• List Price = ₹ 10000
• Discounts: first 10%, then 20%
• Transport expense = 10% of dealer’s purchase cost (after discounts)
• Target profit = 10% on total cost (purchase + transport)

Concept / Approach: Apply discounts successively: Price_after_discounts = 10000 * 0.90 * 0.80. Add transport at 10% of that purchase cost. Finally, multiply by 1.10 to achieve a 10% profit on the total cost base.

Step-by-Step Solution:

Verification / Alternative check: Profit amount = 8712 − 7920 = 792 ⇒ 792/7920 * 100 = 10% exactly.

Why Other Options Are Wrong: 8722 and 8840 deviate from the exact 10% profit. 7892 is below cost; 8800 overshoots the target profit.

Common Pitfalls: Treating successive discounts as a single 30% discount on MRP without compounding (actual multiplier is 0.90 * 0.80 = 0.72). Another mistake is applying profit% on the pre-transport cost rather than on the full effective cost.

Final Answer: ₹ 8712