Question

The sale price of an article including taxes is $Rs.616.$ The rate of sales tax is $10\%.$ If the shopkeeper has made a profit of $12\%.$ find the cost price

• A. $Rs.500$
• B. $Rs.450$
• C. $Rs.600$
• D. $Rs.550$

Answer 1

Answer: (A)

$Rs.500$

Let us assume that the sales price and cost price of the article is $x$ and $y.$

$\begin{array}{cc}SP+Tax& =616\\ x+\frac{10x}{100}& =616\\ \frac{11x}{10}& =616\\ x& =\frac{616\times 10}{11}\\ & =Rs.560\end{array}$

And,

$\begin{array}{cc}CP+Profit& =SP\\ y+\frac{12y}{100}& =560\\ \frac{28y}{25}& =560\\ y& =\frac{560\times 25}{28}\\ & =Rs.500\end{array}$

Hence, the cost price of the article is $Rs.500.$