We will discuss here how to solve the problems based on Profit loss involving tax.
1. A shopkeeper buys a DVD player at a rebate of 20% on the printed price. He spends $ 20 on transportation of the DVD player. After changing a sales tax 6% on the printed price, he sells the DVD player at $530. Find his profit percentage.
Solution:
Let the printed price be P. Then, the cost price = P – 20% of P
= P – \(\frac{20P}{100}\)
= \(\frac{4P}{5}\).
Actual cost price including transportation cost = \(\frac{4P}{5}\) + $ 20.
The sales tax = 6% of P = \(\frac{6P}{100}\) = \(\frac{3P}{50}\)
Therefore, the selling price including sales tax = P + \(\frac{3p}{50}\)
According to the problem,
P + \(\frac{3P}{50}\) = \(\frac{53P}{50}\) = $ 530
\(\frac{53P}{50}\) = $ 530
Therefore, P = $ 500
Therefore, the actual cost price = \(\frac{4P}{5}\) + $ 20 = \(\frac{4 × $ 500}{5}\) + $ 20 = $ 420.
Therefore, profit = printed price – actual cost price = $ 500 - $ 420 = $ 80.
Therefore, profit percentage = \(\frac{$ 80}{$ 420}\) × 100% = \(\frac{400}{21}\)% = 19\(\frac{1}{21}\) %.
2. A seller buys a LED Televisions for $ 2500 and marks up its price. A customer buys the LED Televisions for $ 3,300 which includes a sales tax of 10% on the marked up price.
(i) Find the mark-up percentage on the price of the LED Televisions.
(ii) Find his profit percentage.
Solution:
Let the marked up price be P. Then, the sales tax = 10% of P = P/10.
Therefore, selling price = P + \(\frac{P}{10}\)
According to the problem, = $ 3300
Or, P ∙ \(\frac{11}{10}\) = $ 3300
Therefore, P = $ 3000.
Therefore, $ 2500 is marked up to $ 3000
Therefore, mark-up percentage = \(\frac{$ 300 - $ 2500}{2500}\) × 100%
= \(\frac{500}{2500}\) × 100%
= 20%
Now, the profit = marked up price – cost price = $ 3000 - $ 2500 = $ 500
Therefore, profit percentage = \(\frac{$ 500}{$ 2500}\) × 100% = 20%
● Sales Tax and Value Added Tax
From Profit Loss Involving Tax to HOME PAGE
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
New! Comments
Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.