Question

Q

Answer 1

(i) Marked price = Rs. 25000 + 20% of Rs. 25,000
= 25000 + `20/100` × 25000
= 25000 + 5000
= Rs. 30,000

(ii) For retailer :
C.P. = Marked price - Discount
= 30000 - 10% of 30000
= 30000 -`10/100` × 30000
= 30000 - 3000
= Rs. 27000
Tax on it = 8% of 27000 = `8/100` × 27000 = Rs. 2160
∴ C.P. inclusive tax = Rs. 27000 + Rs. 2160 = Rs. 29160

(iii) VAT paid by the wholesaler = Tax on S.P. - Tax on C.P.
= `8/100` × 27000 - `8/100` × 25000
= `8/100` × 2000
= Rs. 160