Question

Marked price of an article is Rs. $2860$ and rate of VAT is $8\%$. Shopkeeper allows a discount of $20\%$ and still makes a profit of $10\%$. If he spent $4\%$ as overheads, then find the original cost price of the article and final selling price including VAT.

Answer 1

MP = Rs. 2860
VAT = 8%
After VAT Selling Price = 8% Rs. 2860 + Rs. 2860 = Rs. 3088.80
Sale Price after a discount of 20% = Rs. 3088.80 - 20% (Rs. 3088.80) = Rs. 2471.04
Price before VAT is applied = 2860 - 20% = Rs. 2288
Let the Cost Price be $x$.
Since the overheads are 4%, the new CP will be 1.04$x$.
So, profit = 2,288 - 1.04$x$
profit %$=\frac{\left(2,288-1.04x\right)}{1.04x}=\frac{10}{100}$

Implies, $2,288-1.04x=0.104x$
$x=\frac{2,288}{1.144}$
$x=Rs.2000$
Hence, the Cost Price of the article is Rs. 2000 and the final Selling Price including VAT will be Rs.2471.04.