marked price of an article is rs2860and a rate of VAT is 8% . Shopkepper allows a discount of 20% and still makes a profit of 10% . If he spent 4% as overheads ,then find the original cost price of an article and final sellling price including VAT .

Asked by Sanjay | 24th Apr, 2017, 07:54: PM

Expert Answer:

MP = Rs. 2860
VAT = 8%
After VAT Selling Price = 8%Rs. 2860 + Rs. 2860 = Rs. 3088.80

Sale Price after a discount of 20% = Rs. 3088.80 - 20%(Rs. 3088.80) = Rs. 2471.04
Price before VAT is applied = 2860 - 20% = Rs. 2288

Let the Cost Price be x.
Since the overheads are 4%, the new CP will be 1.04x.

So, profit = 2,288 - 1.04x
profit % = begin mathsize 16px style fraction numerator left parenthesis 2288 minus 1.04 straight x right parenthesis over denominator 1.04 straight x end fraction equals 10 over 100 end style
begin mathsize 16px style rightwards double arrow 2 comma 288 space minus space 1.04 straight x space equals space 0.104 straight x
rightwards double arrow straight x equals fraction numerator 2 comma 288 over denominator 1.144 end fraction
rightwards double arrow straight x equals Rs. space 2000 end style

Hence, the Cost Price of the article is Rs. 2000 and the final Selling price including VAT will be Rs. 2471.04.

Answered by Rebecca Fernandes | 24th Nov, 2017, 12:59: PM