price of article is marked 40% above the cost price which is sold with 20% discount including 13% VAT at rs. 6328.

Find the Cp and MP

Let's solve this problem step-by-step.

### Step 1: Define the variables
Let:
- \( CP \) = Cost Price
- \( MP \) = Marked Price
- \( SP \) = Selling Price (before VAT)
- \( SP_{\text{VAT}} \) = Selling Price (including VAT)

### Step 2: Understand the relationships
1. The marked price is 40% above the cost price:
   \[
   MP = CP \times 1.40
   \]

2. The article is sold at a 20% discount on the marked price:
   \[
   SP = MP \times 0.80
   \]

3. The selling price including 13% VAT is given as Rs. 6328:
   \[
   SP_{\text{VAT}} = SP \times 1.13
   \]
   \[
   SP_{\text{VAT}} = 6328
   \]

### Step 3: Calculate the selling price before VAT
From the given information:
\[
SP \times 1.13 = 6328
\]
\[
SP = \frac{6328}{1.13}
\]
\[
SP \approx 5600
\]

### Step 4: Calculate the marked price
Since:
\[
SP = MP \times 0.80
\]
\[
MP = \frac{SP}{0.80}
\]
\[
MP = \frac{5600}{0.80}
\]
\[
MP = 7000
\]

### Step 5: Calculate the cost price
From:
\[
MP = CP \times 1.40
\]
\[
CP = \frac{MP}{1.40}
\]
\[
CP = \frac{7000}{1.40}
\]
\[
CP = 5000
\]

### Summary
- The Cost Price (CP) is Rs. 5000.
- The Marked Price (MP) is Rs. 7000.

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### Relative Questions
1. How is the concept of marked price used in business pricing strategies?
2. What is the impact of VAT on the selling price of goods?
3. How can discounts affect the final selling price?
4. What are the typical percentages used for marking up prices in retail?
5. How does the inclusion of taxes influence consumer purchasing decisions?
6. Can you explain how to derive the selling price after discount and VAT from the cost price directly?
7. What are some common methods for calculating discounts in retail?
8. How do businesses decide on the percentage for VAT inclusion in their pricing?

### Tip
When working with percentages in price calculations, it is crucial to understand the order of applying markups, discounts, and taxes to avoid errors in determining the final selling price.

Learn how to calculate the cost price and marked price of an article sold with discounts and VAT. This problem involves percentage calculations and understanding the impact of VAT on the selling price. Detailed step-by-step solution included.

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