Question

the cost of an article is Rs 10,000 and it is sold at same profit. if a customer bought it for Rs 12430 with 13% VAT calculate the profit percent on the article.​

Answer 1

Percentage profit = 11.3%

Explanation:

Given the following data;

• Vat = 13% = 13/100 = 0.13
• Cost price = 10,000
• Selling price = Rs 12430

To calculate the profit percentage on the article;

First of all, we would determine the value-added (vat) tax levy;

Vat levy = 0.13 * 10000

Vat levy = Rs. 1300

Profit = selling price - cost price

Profit = 12430 - 10000

Profit = 2430

Profit after vat;

Profit after vat = Profit - Vat levy

Profit after vat = 2430 - 1300

Profit after vat = 1130

Next, we would calculate the profit percentage on the article;

`Percentage \; profit = \frac {Profit \; after \; vat}{Cost \; price} * 100`

Substituting the values into the formula, we have;

`Percentage \; profit = \frac {1130}{10000} * 100`

`Percentage \; profit = \frac {113000}{10000}`

Percentage profit = 11.3%