Question

A trader buys an unfinished article for Rs. 2400 and spends Rs. 400 on its finishing and marks up the price of the article 16% above its cost price to gain a profit. How much will the customer pay including 25% tax?

• A. Rs.4080
• B. Rs. 4020
• C. Rs.4040
• D. Rs.4060

Answer 1

The correct option is D

Rs.4060

Total cost price of the article =$Rs.2400+Rs.400$
= Rs. 2800
He marked to gain 16% profit.
So M.P= 2800 + $\frac{16}{100}\times 2800$
M.P= 2800 + 448

= Rs. 3248
Since he is not giving any discount on M.P
M.P=S.P
Total amount=sale price + sales tax
Total amount= 3248 + $\frac{25}{100}\times 3248$
Total amount= 3248 + 812

= Rs. 4060