Question

10. A shopkeeper bought 5 sets of sofa from a factory for $ 15800 (inclusive of a 10% value-added

tax). He then sold each set of sofa for $6794.
(a) Calculate the percentage profit made by the shopkeeper. [3]
(b) How much was the value-added tax for the 5 sets of sofa? [2]

Answer 1

(a).
Percentage profit made by the shopkeeper
= (5(6794)-15800)/15800 x 100
= (33970-15800)/15800 x 100
= 1.15 x 100
= 115 %

(b).
Value-added tax
= 10/100 x 15800
= $1580

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