Manufacturer produces a product A which costs to him 100 and wanted to earn 16 as net profit and also wanted to give 16% as cash discount.

Habibi ... The cost of the product in business terms is only a component of the cost. There are others such as:-

Distribution Cost, Overhead Cost, Warehouse, logistics & Re-supply cost, Retailing cost (Retailer Margin/Rebates), Depreciation & many more.

As i believe the Manufacturing cost you have included in it (Though it is wrong As Distribution cost/Retailer Cost & Logistics & resupply is calculated by Selling price & not on cost price :-) )

 Moving ahead with the said question:-

Cost =100

Selling Price Should be =141 (Discount is not given at the company's cost but consumer price or SP)

Thus, SP (Selling Price)=141 -16% Discount (*141=22.56) Thus after discount it is118.44

And Company Margin is (118.44-100)/118.44 =16% (Margin Formula is SP-Cost/SP) after discount.

Thus, in Order to have16% GP & to give discount of16% the company's BP (Or Selling Price) should be141.00  -)

(I am really shocked why most people has taken138.10 , what is the logic behind this)

The net selling price after the discount would be 116. Which is 84% of the gross selling price. The gross selling price is therefore 116/84*100 = 138.10

Selling price =138.10

The Selling Price would be calculated as follows:

(100+16) /0.84 =138.10

Selling price (100+16)/(1-0.16)=138.10

138.10 if there are no overheads

Given

Cost  =100

Target profit =16

Sales discount16% of sales

Required? Selling price

Let X be Gross Selling price, then

X -016x -100 =16

=0.84x -100 =16

0.84x =116

x =116/0.84

Gross selling price =138.1

Sales discount =138.1*16%

Sales discount =22.1

Gross selling price - Sales discount - cost of sales = Target profit

138.1 -22.1 -100 =16

16 =16

Thus, the selling price is138.1

The Sales Price should be138/- 

Sales Price Rs138/- Less16% Discount will be Rs22/- and therefore net sale price will be Rs116/-

Less Cost of Rs100/- shall yield a profit of Rs16/-

Agree with All Answer

Selling price of the product A before discount is =

.4

Well done Aeisha..! You precisely presented a neat and clean answer.