Question

Using the smiths bbq report the cost of wine for next week will increase by 2% from the current week. If all other cost of sales stays consistant what will be the approximate total cost of sale for next week

Answer 1

Answer:

approximately $110.16

Step-by-step explanation:

Given:

Cost of wine will increase = 2%

All other taxes remain same

TO Find:

Approximate total cost = ?

Solution:

Usually the sales tax is 8% on any product

and increase in price is given as 2%

Now let us suppose that the original price of the wine was $100

Now

Sales tax rate is 8% which means that we have to pay an additional $8 on the wine to buy it

so its cost price last week was = $108

Now

for this week

increase in price = 2%  of old price

and it is                = $ 2

so price would be $ 102

Now the tax will be received at $102

and

value of sales tax = $ 8.16

so amount we have to pay = $110.16

So approximately if in past week we have to pay $108 then in this we will have to pay $110.16