Q) Ashok produces pencils at Rs.9 and sells them at Rs.12. The
government used to impose a tax of 10% on the production cost. It now
decided to impose 10% tax on the selling price. Find the percentage
decrease in Ashok's profit.
(A) 28%
(B) 42 % (C) 14% (D) 74%
Answers
Answer:
3.33% decrease
Step-by-step explanation:
I
10% tax is implies on production cost so = 10/100 * 9 = 0.9 rs tax
sp=12rs
profit = SP-CP-Tax= 12-9-0.9= Rs 2.1
PRofit % = profit/cp *100 = 2.1/9 *100 = 23.33%
II
In this condition 10% tax is implied on SP=10/100 * 12 = 1.2rs
Profit = SP-CP-Tax= 12-9-1.2 = Rs 1.8
PRofit % = profit/cp *100 = 1.8/9 *100 =20%
Decline in profit % = 23.33-20 = 3.33% decrease
Answer:
3.33% decrease
Step-by-step explanation:
I
10% tax is implies on production cost so = 10/100 * 9 = 0.9 rs tax
sp=12rs
profit = SP-CP-Tax= 12-9-0.9= Rs 2.1
PRofit % = profit/cp *100 = 2.1/9 *100 = 23.33%
II
In this condition 10% tax is implied on SP=10/100 * 12 = 1.2rs
Profit = SP-CP-Tax= 12-9-1.2 = Rs 1.8
PRofit % = profit/cp *100 = 1.8/9 *100 =20%
Decline in profit % = 23.33-20 = 3.33% decrease