Question

a bicycle manufacturer sells a bicycle at rupees 1308 after adding the value added tax at the rate of 9% still makes a profit of 20% on the sale of its bicycle what is the manufacture cost of eachbicycle​

Answer 1

Step-by-step explanation:

The manufacturing cost of each bicycle is Rs.1000.

Step-by-step explanation:

Given : A bicycle manufacturer sells a bicycle at ₹ 1308 after adding VAT at the rate of 9%. still he makes a profit of 20% on the sale of each bicycle.

To find : What is the manufacturing cost of each bicycle ?

Solution :

Let the cost price be 'x'.

VAT is at the rate of 9%.

A bicycle manufacturer sells a bicycle at ₹ 1308 after adding VAT at the rate of 9%.

i.e. \frac{100+9}{100} \times x=1308

100

100+9

×x=1308

1.09x=13081.09x=1308

x=\frac{1308}{1.09}x=

1.09

1308

x=1200x=1200

The manufacturing cost is Rs.1200.

He makes a profit of 20% on the sale of each bicycle.

So, The original cost price is given by

CP=\frac{100}{100+20}\times MCCP=

100+20

100

×MC

CP=\frac{100}{120}\times 1200CP=

120

100

×1200

CP=1000CP=1000

Therefore, The manufacturing cost of each bicycle is Rs.1000.