Question

The marked price of an article is 3,500 and rate of VAT is 12%. A shopkeeps allows a discount of 20% and still makes a profit of 10%. Find the original cost
price of the article and the selling price including VAT.​

Answer 1

⊕ANSWER⊕

Marked price = rs. 3500

VAT % =12 %

so, SP = 3500 + 12% of 3500

or, SP = 3500 + 0.12 ×3500 = rs. 3920

After discount the new SP

= 3920 - 20% of 3920

= 3920 - 0.20×3920

= rs. 3136

But profit % = 10 % ; SP = rs. 3136

Let CP = X

so, SP = CP + 10% of CP

or, 3136 = X + 0.10 X

or, 3136 = 1.10 X

or, X = 3136/1.10

original CP = 2850.909

As, VAT is 12%

so, SP including VAT

= 2850.909 + 0.12×2850.900

= rs. 3193.018