Question

A suppliers sold a machine levying 13% vat on rupees 320000 to a retailer. the retailer spent rupees 10000 for transportation and rupees 5000 for the local tax if the retailer sold it at a profit of rupees 15000 to a customer how much did the customer pay for the machine with 13% vat? ​

Answer 1

395,500

Explanation:

The computation is shown below:

Supplier to retailer = 320,000

Vat tax = 13%

Retailer spent for transportation = 10,000

local tax = 5,000

Profit = 15,000

Now based on the above information

the customer would pay the amount with 13% vat is

= (320,000 + 10,000 + 5,000 + 15,000) + 13% of total

= 350,000 + 13% of 350,000

= 350,000 + 45,500

= 395,500