Answer:
To calculate the selling price of each amplifier, we need to consider the cost, import duty, sales tax, and the desired profit margin.
Cost of each amplifier: sh. 3,750
Import duty of 125% on the cost:
Import duty = 125% of sh. 3,750
= 125/100 * sh. 3,750
= sh. (125/100 * 3,750)
= sh. 4,687.50
Cost of each amplifier including import duty:
Total cost = Cost + Import duty
= sh. 3,750 + sh. 4,687.50
= sh. 8,437.50
Sales tax of 20% on the total cost:
Sales tax = 20% of Total cost= 20/100 * sh. 8,437.50
= sh. (20/100 * 8,437.50)
= sh. 1,687.50
Total cost including sales tax:
Total cost = Total cost + Sales tax
= sh. 8,437.50 + sh. 1,687.50
= sh. 10,125
Desired profit margin of 10% on the total cost:
Profit = 10% of Total cost
= 10/100 * sh. 10,125
= sh. (10/100 * 10,125)
= sh. 1,012.50
Selling price of each amplifier:
Selling price = Total cost + Profit
= sh. 10,125 + sh. 1,012.50
= sh. 11,137.50