Question

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

Answer 1

Selling soaps at price 6.36 per piece after adding vat at the rate of 6% and still he will make profit of 20%
So the price of soap after adding 6% vat is 6.36/100 × 20 = 1.27
6.36 - 1.27 = 5.09
The manufacturer rate of soap is :
5.09/100 × 6 = 0.30
5.09 - 0.30 = 4.79