Question

A wholesaler purchased some building materials for Rs 1,80,000. He/she sold them at 5% profit and levied 15% VAT to a supplier. The supplier spent Rs 7,500 for transportation and sold at a profit of 10% to a customer. How much did the customer pay for the materials with 15% VAT?

a) Rs 2,25,000
b) Rs 2,42,000
c) Rs 2,57,500
d) Rs 2,65,000

Answer 1

To calculate the amount paid by the customer for the materials with 15% VAT, you need to consider the different costs and profits involved in the transaction. The customer paid Rs 2,39,085 for the materials with 15% VAT.

Step-by-step explanation:

To calculate the amount paid by the customer for the materials with 15% VAT, we need to consider the different costs and profits involved in the transaction.

First, let's calculate the selling price of the materials for the wholesaler. Since the wholesaler sells at a 5% profit, the selling price can be found by multiplying the cost price by (1 + 5/100).

Selling Price = Cost Price x (1 + Profit Percentage)

Selling Price = Rs 1,80,000 x (1 + 5/100) = Rs 1,89,000

Next, let's calculate the selling price of the materials for the supplier. Since the supplier sells at a 10% profit, the selling price can be found by multiplying the cost price by (1 + 10/100).

Selling Price = Cost Price x (1 + Profit Percentage)

Selling Price = Rs 1,89,000 x (1 + 10/100) = Rs 2,07,900

Finally, let's calculate the amount paid by the customer with 15% VAT. The amount paid by the customer can be found by adding the 15% VAT to the selling price of the supplier:

Amount Paid = Selling Price + Selling Price x 15/100

Amount Paid = Rs 2,07,900 + Rs 2,07,900 x 15/100 = Rs 2,07,900 + Rs 31,185 = Rs 2,39,085

Therefore, the customer paid Rs 2,39,085 for the materials with 15% VAT.