The sales price of an item including the sales tax is Tk. 616. The tax rate is 10%. If the shopkeeper made a profit of 12%, what was the cost price of the item in Tk?

The sales price of an item including the sales tax is Tk. 616. The tax rate is 10%. If the shopkeeper made a profit of 12%, what was the cost price of the item in Tk?

A 500

B 513

C 550

D None of these

Solution

Correct Answer: Option A

110% of S.P. = 616 Tk.

= S.P. = Tk.(616 x 100/110) = Tk.560.

C.P. = Tk.(100/112 x 560)

= Tk.500