Question

A dealer of electric oven sold an induction heatet at Rs.4,200 with 13% VAT to a retailer. The retailer added transportation cost of Rs.250, profit 15% and local tax Rs.150 and sold to a costumer. How much will be paid for that heater if he/she has to pay 13% VAT​

Answer 1

$6,619.42.

Explanation:

Since a dealer of electric oven sold an induction heater at Rs. 4,200 with 13% VAT to a retailer, and the retailer added transportation cost of Rs. 250, profit 15% and local tax Rs. 150 and sold it to a costumer, To determine how much will be paid for that heater if the consumer has to pay 13% VAT, the following calculation must be performed:

((4,200 x 1.13) x 1.15 + 250 + 150) x 1.13 = X

((4,746 x 1.15) + 250 + 150) x 1.13 = X

(5,457.9 + 400) x 1.13 = X

5,857.9 x 1.13 = X

6,619.42 = X

Thus, the price to be paid by the consumer will be $ 6,619.42.