Answer:
The original cost price of the electric item for the retailer was RS. 25,000. This was calculated by first finding the price before VAT and then accounting for the retailer's 10% loss on the sale.
Step-by-step explanation:
To calculate the cost price of the electric item to the retailer, we first need to determine the price of the item before the VAT (Value Added Tax) was added. Given that the customer paid a total of RS. 25,425, which includes a 13% VAT, we can calculate the price before VAT as follows:
Let the price before VAT be X.
So, X + (13% of X) = RS. 25,425
X + 0.13X = RS. 25,425
1.13X = RS. 25,425
X = RS. 25,425 / 1.13
X = RS. 22,500 (rounded to the nearest rupee)
The price of RS. 22,500 represents the amount the customer would have paid without tax, which is also the retailer's selling price at a 10% loss. Now we need to find the original cost price for the retailer, before the loss. If the selling price after a 10% loss is 90% of the cost price (100% - 10% = 90%), we can set up the following equation:
90% of cost price = RS. 22,500
0.90 * cost price = RS. 22,500
Cost price = RS. 22,500 / 0.90
Cost price = RS. 25,000
Hence, the original cost price of the electric item to the retailer was RS. 25,000.