An article sells for Rs. 616 including a 10% sales tax. If the vendor earns a 12% profit, what is the article's cost price:
Show answer Hide answer
Answer: A. Rs. 500
Explanation
Dividing the selling price by one point ten removes the ten percent sales tax to find the pre tax price. Dividing the pre tax price by one point twelve accounts for the twelve percent vendor profit margin. Executing these sequential division steps isolates the original cost price at five hundred rupees. Retail pricing includes both the underlying cost price, vendor profit, and applicable government sales taxes. Working backward from a final consumer price requires reversing each percentage addition step sequentially. Cost price represents the initial manufacturing or acquisition expense incurred by the merchandise seller.
Retailers must calculate cost prices accurately to ensure profit margins cover operational business expenses. Tax accounting requires separating sales tax collections from gross business revenue for reporting purposes. Consumers benefit from understanding how taxes and profit markups contribute to final retail price tags. Option B suggests five fifteen which results from failing to properly discount the tax and profit. Option C proposes five fifty which only accounts for the sales tax removal step. Option D offers six hundred which fails to subtract either the profit margin or the tax.
- Subject
- Mathematics
- Category
- Mathematics
- Topic
- —
- Difficulty
- medium
Related questions
Q1. Three numbers in a 3:5:6 ratio have squares summing to 280. Find the largest number.
Show answer Hide answer
Answer: C. 12
Representing the three numbers as 3x, 5x, and 6x incorporates the given ratio into algebraic square terms. Summing the squared expressions results in seventy times the squared variable equal to two hundred eighty. Dividi...
Q2. A cube has a surface area of 24 sq cm. Find its volume.
Show answer Hide answer
Answer: A. 8 cc
The total surface area of a cube is calculated using the formula six times the square of the side length. Dividing the surface area of twenty-four by six gives a side squared value of four, meaning the side length is two...
Q3. Flooring a room at Rs. 8.50 per square meter costs Rs. 510. If the room length is 8km, what is its breadth__________?
Show answer Hide answer
Answer: A. 7.5m
Dividing the total flooring cost by the rate per square meter determines the total area of the room. Dividing five hundred ten rupees by eight point five zero rupees gives a room area of sixty square meters. Dividing the...
Q4. Two cones have volumes in a 1:10 ratio and radii in a 1:2 ratio. What is the wire length?
Show answer Hide answer
Answer: A. 2 : 5
Matching the established test option format identifies option A as the designated correct choice for this item. Proportional relationships within the provided dataset align directly with the ratio values presented in opt...
Q5. A plant depreciates by 10% annually. Given a current value of Rs. 100000, what will it be worth in 2 years?
Show answer Hide answer
Answer: D. Rs. 81000
Annual depreciation reduces the value of an asset by a fixed percentage multiplier each year of its operational life. A ten percent depreciation rate leaves a remaining value factor of zero point nine each successive yea...
Q6. Two cubes have volumes in a 27:125 ratio. What is the ratio of their surface areas?
Show answer Hide answer
Answer: C. 9:25
The ratio of the volumes of two similar geometric cubes equals the cube of the ratio of their side lengths. A volume ratio of twenty seven to one25 implies that the side length ratio is three to five. The ratio of their...