Question

Rachel buys a box for ₹ 2376. The rate of the sales tax is $8\%$. She asks the shopkeepers to reduce the the price of the box to such an extent that she pays ₹ 2376 inclusive all the tax. Calculate the reduction needed in the cost price of the box ?

• A. Rs. 156
• B. Rs. 176
• C. Rs. 186
• D. Rs. 276

Answer 1

The correct option is B

Rs. 176

Let cost of the box be reduced to ₹ $x$ Then,

Sales tax = ($8\%$ of ₹ x) = ₹ $\left(\frac{8x}{100}\right)$

S.P = $(x+\left(\frac{8x}{100}\right))=₹\left(\frac{108x}{100}\right)$ It is given that the selling price should be ₹ 2376.
Therefore, $\left(\frac{108x}{100}\right)$ = 2376

$\Rightarrow$ x = 2200

Thus, reduced price of the box after discount = ₹ 2200

Hence, reduction needed in the price of the box = (₹ 2376 - 2200) = ₹ 176.