1. The manager of a bottle shop makes 25% profit on the cost price of all bottles of wine sold in the shop. She charges $12 for a bottle of Open View reisling. A hotel room service charged $30 for a similar bottle of Open View reisling.
a) How much profit does the hotel room service make from selling 1 bottle of Open View reisling?
b) What percentage profit on their cost price does the hotel room service make?
2. All goods for sale in England are subject to a 17.5% value added tax(VAT) . Julian bought two pairs of pants for £188, which included VAT. How much of the pants was the VAT?
Why is 14.89% of the price of goood in the UK give the value of the 17.5% VAT in the price?
since the hotel buys the wine at $12 and sells it at $30, it makes $18 on a bottle of wine.
18/12 = 1.5, so it makes 150% profit, based on cost.
1.175p = 188
p = 160
tax = 28
1.175p = s
p = .851s
s - .851s = .149s = 14.9%
a) To calculate the profit made by the hotel room service from selling 1 bottle of Open View reisling, we need to find the cost price of the bottle and the profit percentage.
Step 1: Calculate the cost price of the bottle:
Since the manager of the bottle shop makes a 25% profit on the cost price, we can use reverse percentage calculation to find the cost price.
Let's assume the cost price of the bottle is C.
The selling price of the bottle in the bottle shop is $12, and the profit made is 25% of the cost price.
Profit = 25% of C = 0.25C
Selling price = Cost price + Profit
$12 = C + 0.25C
$12 = 1.25C
Divide both sides by 1.25:
$12/1.25 = C
$9.60 = C
So, the cost price of the bottle is $9.60.
Step 2: Calculate the profit made by the hotel room service:
Profit = Selling price - Cost price
Profit = $30 - $9.60
Profit = $20.40
Therefore, the hotel room service makes a profit of $20.40 from selling 1 bottle of Open View reisling.
b) To calculate the percentage profit on the cost price that the hotel room service makes, we use the following formula:
Profit percentage = (Profit / Cost price) x 100
Profit percentage = ($20.40 / $9.60) x 100
Profit percentage ≈ 212.5%
Therefore, the hotel room service makes a profit of approximately 212.5% on the cost price.
2. To find out how much of the price of the pants was the VAT, we will need to calculate the VAT amount first.
Step 1: Calculate the VAT amount:
The total price of the pants including VAT is £188. The VAT rate is 17.5%.
VAT amount = (VAT rate / 100) x Total price
VAT amount = (17.5 / 100) x £188
VAT amount = 0.175 x £188
VAT amount = £32.90
Therefore, the VAT amount on the pants is £32.90.
Why is 14.89% of the price of good in the UK give the value of the 17.5% VAT in the price?
The statement that 14.89% of the price of a good in the UK gives the value of the 17.5% VAT is not accurate. This seems to be a misunderstanding or an incorrect calculation.
The correct calculation shows that the VAT amount on a good priced at £188, with a VAT rate of 17.5%, is £32.90, which is approximately 17.5% of the total price.
If we try to find a percentage that closely approximates the VAT of 17.5% using reverse calculations:
VAT percentage ≈ (VAT amount / Price) x 100
VAT percentage ≈ (£32.90 / £188) x 100
VAT percentage ≈ 17.49%
So, the closest percentage that approximates the VAT of 17.5% is approximately 17.49%, not 14.89%.