Question

A computer manufacturing company ABC sells a computer to a distributor P for Rs 44000 including sales tax. The distributor P sells it to a retailer Q for Rs 43500 including sales tax and the retailer Q sells it to the customer for Rs 46800 if the rate of sales tax is 10%, find the cost price of the computer for the distributor P.

• A. Rs. 40,000
• B. Rs. 41,566
• C. Rs. 39,000
• D. Rs.42,345

Answer 1

The correct option is A

Rs. 40,000

Let the cost price of the computer for the distributor P be Rs. x. Then,

Tax charged by the company ABC = (10% of Rs. x) = Rs. $\left(\frac{x}{10}\right)$

Purchasing price of the computer for the distributor = Rs. $(x+\left(\frac{x}{10}\right))$ = Rs.$\frac{11x}{10}$

So, purchasing price of the computer for the distributor P for Rs. 44000.

So, $\left(\frac{11x}{10}\right)$ = 4400

$\Rightarrow$ x = 40,000.