A shopkeeper buys an article whose printed is rs 4000 from a wholesaler at a discount of 20% . the rate of sales tax under vat on the article is 8%. If he sells the article to a consumer at the printed price plus tax
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To find the selling price of the article, we need to follow these steps:
Step 1: Calculate the discount amount the shopkeeper received while buying the article.
- Discount = (Discount rate / 100) * Printed Price
- Discount = (20 / 100) * 4000
- Discount = 800
Step 2: Calculate the actual cost price the shopkeeper paid after deducting the discount.
- Cost Price = Printed Price - Discount
- Cost Price = 4000 - 800
- Cost Price = 3200
Step 3: Calculate the sales tax amount the shopkeeper needs to add to the selling price.
- Sales Tax = (Tax rate / 100) * Printed Price
- Sales Tax = (8 / 100) * 4000
- Sales Tax = 320
Step 4: Calculate the selling price.
- Selling Price = Cost Price + Sales Tax
- Selling Price = 3200 + 320
- Selling Price = 3520
Therefore, the shopkeeper should sell the article to the consumer at Rs 3520.