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 cost of the fan to the consumer inclusive of tax is

Options

• ₹1296

• ₹1380

• ₹1310.40

• ₹1490.40

Answer 1

Cost of fan to the consumer inclusive tax
= ₹1380 + 110.40
= ₹ 1490.40.