Question

An oil refinery buys oil at Rs 3600 per barrel. There is 10% wastage. If the refinery wants to earn ...​

Answer 1

Dear Student,

# Complete question -

Q. An oil refinery buys oil at Rs 3600 per barrel. There is 10% wastage. If the refinery wants to earn 5% profit then at what price should it sell including 8% tax on selling price ?

◆ Answer -

Taxed price = 4536 Rs

◆ Explanation -

Here, 10% wastage is mentioned. So cost price of each usable barrel will be -

Cost price = 3600 × 100/(100-10)

Cost price = 4000 Rs

To get 5% profit selling price (excluding taxes) should be -

Selling price = 4000 × (100+5)/100

Selling price = 4200 Rs

After including 8% tax on selling price,

Taxed price = 4200 × (100+8)/100

Taxed price = 4536 Rs

Therefore, selling price including taxes of each barrel will be 4536 Rs.

Thanks dear...