A retailer buys an article from the wholesaler at ₹80 and the wholesaler charges a sales tax at the prescribed rate of 8% upon it. The retailer fixes the price at ₹100 and charges sales tax at the same rate from the customers. Find the total Sales tax paid in the process.

₹ 15.6

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₹ 16.4

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₹ 14.4

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Solution

The correct option is C
₹ 14.4

The Sales tax Paid by the Retailer = $\frac{8}{100} \times$ 80 = ₹ 6.4

The Sales tax Paid by the Customer = $\frac{8}{100} \times$ 100 = ₹ 8

$∴$ the total Sales Tax in the process = ₹ 6.4 + ₹ 8 = ₹ 14.4

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A retailer buys an article from the wholesaler at ₹80 and the wholesaler charges a sales tax at the prescribed rate of 8% upon it. The retailer fixes the price at ₹100 and charges sales tax at the same rate from the customers. Find the total Sales tax paid in the process.

The correct option is C ₹ 14.4 The Sales tax Paid by the Retailer = 8100×80 = ₹ 6.4 The Sales tax Paid by the Customer = 8100×100 = ₹ 8 ∴ the total Sales Tax in the process = ₹ 6.4 + ₹ 8 = ₹ 14.4

The correct option is C
₹ 14.4

The Sales tax Paid by the Retailer = $\frac{8}{100} \times$ 80 = ₹ 6.4

The Sales tax Paid by the Customer = $\frac{8}{100} \times$ 100 = ₹ 8

$∴$ the total Sales Tax in the process = ₹ 6.4 + ₹ 8 = ₹ 14.4