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

विकल्प

• ₹ 1200

•  ₹ 1380

• ₹ 1490.40

• ₹ 11296

Answer 1

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

= `("C.P." xx (100 + "Profit%"))/(100)`

= ₹`(1200 xx (100 + 15))/(100)`

= ₹`(1200 xx 115)/(100)`
= ₹1380.