The Market Price of the product is RS. 750.
The Market Price is calculated by dividing the components associated to Discount, which is less than 1, and the Value Added Tax, which more than 1, to the Resulting Price.
[tex]c_{M} = \frac{c_{R}}{\left(1-\frac{r_{D}}{100} \right)\cdot \left(1+\frac{r_{T}}{100} \right)}[/tex] (1)
Where:
[tex]c_{M}[/tex] - Market price, in monetary units.
[tex]c_{R}[/tex] - Resulting price, in monetary units.
[tex]r_{D}[/tex] - Discount rate, in percentage.
[tex]r_{T}[/tex] - Tax rate, in percentage.
If we know that [tex]c_{R} = 672[/tex], [tex]r_{D} = 20[/tex] and [tex]r_{T} = 12[/tex], then the market price is:
[tex]c_{M} = \frac{672}{\left(1-\frac{20}{100} \right)\cdot \left(1+\frac{12}{100} \right)}[/tex]
[tex]c_{M} = 750[/tex]
The market price of the product is RS. 750.
