There is a manufacturing company who sold furniture's at the rate of Rs 31,300 per unit cost which is inclusive of 5% Value added tax.
calculate the basic cost (exclusive of Value added tax) for 250 furniture's sold by the company.
(x+.05) = 31,300
Solve for x and multiply by 250.
To calculate the basic cost (exclusive of Value Added Tax) for 250 furniture's sold by the company, we need to first find the basic cost of each furniture unit.
The selling price per unit, inclusive of 5% Value Added Tax (VAT), is Rs 31,300.
To find the basic cost, we need to remove the VAT amount from the selling price.
The VAT amount is 5% of the selling price. So, we can calculate the VAT as follows:
VAT = 5% of the selling price
VAT = (5/100) * Rs 31,300
Now, we can calculate the basic cost of each furniture unit by subtracting the VAT amount from the selling price:
Basic Cost = Selling Price - VAT
Finally, to find the basic cost for 250 furniture's, we need to multiply the basic cost per unit by the number of units sold.
Basic Cost for 250 furniture's = Basic Cost per unit * Number of units
Let's calculate:
VAT = (5/100) * Rs 31,300 = Rs 1,565
Basic Cost = Rs 31,300 - Rs 1,565 = Rs 29,735
Basic Cost for 250 furniture's = Rs 29,735 * 250 = Rs 7,433,750
Therefore, the basic cost (exclusive of VAT) for 250 furniture's sold by the company is Rs 7,433,750.