A software developer sells a license for a new application to a reseller at a 20% discount. An installation and support fee of 15% is added to the discounted price. The reseller then sells the license for ₹7800 more, making a 25% profit. Determine the original marked price of the software license by the developer.
- AOption (a)
₹19,254.62
- BOption (b)
₹18,181.82
- COption (c)
₹20,654.67
- DOption (d)
₹33,913.04
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Correct answer
₹33,913.04
Why this answer is correct
Shortcut Trick
Let the Marked Price (MP) be 100 units.
Discounted price = 100 − 20% = 80 units.
Cost Price (CP) including fee = 80 + (15% of 80) = 92 units.
Profit = 25% of 92 units = 23 units.
Given 23 units = ₹7800 ⇒ 100 units = (7800 ÷ 23) × 100 = ₹33,913.04.
∴ The correct answer is ₹33,913.04.
Alternate Method
Given:
Discount = 20%
Installation and support fee = 15%
Profit made by reseller = 25%
Amount of profit = ₹7800
MP (100x)−20%80x+15%CP (92x)+25%SPProfit = 23x = ₹7800
Calculation:
⇒ Let the Marked Price (MP) of the license = 100x
⇒ Price to the reseller after 20% discount = 100x − (20% of 100x) = 80x
⇒ Final Cost Price (CP) for the reseller = 80x + (15% of 80x) = 80x + 12x = 92x
⇒ Profit earned by the reseller = 25% of CP = 25% of 92x = 23x
⇒ Since the profit earned is ₹7800
⇒ 23x = 7800
⇒ x = 7800 ÷ 23
⇒ Original MP = 100x = 100 × (7800 ÷ 23) = 780000 ÷ 23
⇒ Original MP = 33913.043...
∴ The correct answer is ₹33,913.04.
Additional Information
Marked Price and Discount
Discount is always calculated on the Marked Price (MP). Selling Price (SP) = MP × (100 − Discount%) ÷ 100.
Profit and Loss
Profit or loss is always calculated on the Cost Price (CP) unless stated otherwise. Profit = SP − CP.
Effective Cost Price
Any additional overheads like transportation, installation fees, or repairs are added to the initial purchase value to determine the final effective Cost Price.