Question

A shopkeeper marks the price of a dress material 10% above his cost price and levies a sales tax of 8% on it. If a customer has to pay Rs 2,970 for the dress material, find the cost price of the dress material.

Answer 1

Let x be the cost price. 

Marked pnce = x+ 10 % of x = Rs x + `10/100 xx  x = "Rs"  (11 x)/10`

Sales tax = 8 % of the marked price.

`= 8/100 xx "Rs"  (11 x)/10`

= Rs `(88 x)/1000` 

Therefore, total cost of dress material = marked price + sales tax 

= `"Rs"  (11 x)/10 + (88 x)/1000`

= Rs `(1188  x)/1000`

But, total price = Rs 2, 970 

⇒ `(1188  x)/1000` = Rs 2970

⇒ x = Rs `(2970 xx 1000)/1188`

⇒ x = Rs 2500

Hence, the cost price of the dress material = Rs 2,500