Question

A soap manufacturer is capable of selling his soaps at Rs. 6.36 per piece after adding the VAT at the rate of 6%. Still, he will make a profit of 20% on the sale. What is his manufacturing cost per soap?

Answer 1

Solution:-
Let the cost price be 'x'
Selling price of the soap = Rs. 6.36
VAT = 6 % and profit on each soap = 20 %
SP = manufacturing cost + VAT + profit
∴ 6.36 = x + 6 % x + 20 % x
∴ 6.36 = x + 6x/100 + 20x/100
∴ 636 = 100x + 6x + 20x
∴ 636 = 126x
∴ x = 636/126
= Rs.5.047 or Rs. 5.05
Manufacturing cost of per soap = Rs. 5.05 

Answer 2

Answer:

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