Question

A shopkeeper buys a raw material for Rs. 2000 and spends Rs. 400 on its decoration and packing. If he sold the article for Rs. 3200 including 16% sales tax then, find his profit percent.

• A. 12%
  
• B. 19%
  
• C. 14.9%
  
• D. 11.9%

Answer 1

The correct option is C

14.9%

Let the marked price be x.
He sold the item at marked price so selling price also equal to x.
Now, it is given that the article was sold at Rs. 3200 including 16% sales tax.
Total money= sale price + sale tax
3200= x + 16% of x
3200= x+ $\frac{16}{100}x$
$\frac{116x}{100}=3200\Rightarrow x=2758.62$
C.P= Rs. 2000 + Rs. 400= Rs. 2400
S.P= 2758.62
Profit% $=\frac{S.P-C.P}{C.P}\times 100$
$=\frac{2758.62-2400}{2400}\times 100=14.94$