Question

A manufacturer sells a bicycle at rs 1308 after adding VAT at the rate of 9% Still he makes a profit of 20% on the sell of each bicycle What is the Manufacturing cost of each bicycle

Answer 1

Let manufacturing cost,C.P= x rupees

S.P₁=x+20%of x=x+20x/100=6x/5
vat on sp=9% of sp=9% of 6x/5=(9*6x)/500
=27x/250
sp₂= vat + sp₁,, 27x/250 + 6x/5 = 1308
(27x +50x)=1308*250
77x=1308*250
x=4246.75