Question

A retailer purchases a fan for ₹ 1200 from a wholesaler and sells it to a consumer at a 15% profit. If the rate of sales tax (under VAT) at every stage is 8%, then choose the correct answer from the given four options
The selling price of the fan by the retailer (excluding tax) is

पर्याय

• ₹ 1200

•  ₹ 1380

• ₹ 1490.40

• ₹ 11296

Answer 1

Cost price of a fan = ₹ 1200
Profit = 15%
∴ Sale price

= ${\displaystyle \frac{\text{C.P.}\times (100+\text{Profit\%})}{100}}$

= ₹${\displaystyle \frac{1200\times (100+15)}{100}}$

= ₹${\displaystyle \frac{1200\times 115}{100}}$
= ₹1380.