Question

selling price of bicycle is 1308 vat is 9% and profit 20% what is cp

Answer 1

Solution :-

Let the cost price of the bicycle including 9 % VAT be $ 'x'

Selling price of each bicycle = $ 1308

So, according to the question

x + (x*20)/100 = 1308
x + x/5 = 1308
(5x + x)/5 = 1308
6x/5 = 1308
6x = 1308*5
6x = 6540
x = 6540/6
x = 1090

So, Cost price including 9 % VAT of the bicycle is $ 1090.

As 9 % VAT is already added in $ 1090.
So, manufacturing cost of each bicycle = (1090*100)/109
= 109000/109
= $ 1000

So, the manufacturing cost of each bicycle is $ 1000

Hope This Helps :)