Question

Brinda purchased 18 coats at the rate of Rs 1,500 each and sold them at a profit of 6%. If customer is to pay sales tax at the rate of 4%, how much will one coat cost to the customer and what will be the total profit earned by Brinda after selling all coats?

Answer 1

Given, the cost price of each coat = Rs. 1500

Also, the total number of coat purchased = 18

⇒ We need to find out the cost of each coat and profit earned by brinda.

Now, we know that the total cost of 18 coats = Total number of coats × Cost of each coat.

⇒ Total cost of 18 coats = 18 × 1500 = 27000

⇒ Gain% = 6%

Now, we know that

Gain = `(("Gain"%) xx "Cost price")/100`

⇒ Gain = `(6 xx 27000)/100 = 1620`

Now, we know that Selling price = Gain + Cost price

⇒ Amount received by brinda = 1620 + 27000 = 28620

Customer pay sales tax = 4%

Now, we know that the Total Sales Tax = Cost × Sales Tax

⇒ Total Sales Tax = `(28620 xx 4)/100 = 1144.8`

Now, The cost price with the sales tax Total Cost = Cost + Total Sales Tax.

⇒ Total cost with sales tax = 28620 + 1144.8 = Rs. 29764.8

Cost Price of one coat = `"Total cost"/"Number of coats"`

⇒ Cost price of one coat = `29764.8/18` = Rs. 1653.6

⇒ Profit earned by Brinda = 28620 – 27000 = 1620

Hence, Brinda earned the profit of 1620.