Question

An article is sold for Rs. 1500 including VAT @ of 12%. The shopkeeper earns a profit of 10% on the cost price. Find the cost price of the article.

Answer 1

Let the cost price $=$ Rs. $100$
Profit% = 10% => Selling price $=$ Rs. $110$
VAT charged $=12\%$ of Rs. $110$
$=\frac{12}{100}\times 110=13.2$
Total price paid by the customer $=Rs.110+13.20=Rs.123.20$
If the total price is Rs. 123.20, then CP is Rs. 100
If the total price is Rs. 1500, then the cost price = $\frac{1500\times 100}{123.20}=1217.53$
Cost price $=$ Rs. $1217.53$