Worksheet on Profit/Loss Involving Sales Tax is available here. Practice the questions from the problems on Profit/Loss Involving Sales Tax. We can find the concept of profit loss involving sales tax by adding the goods sold and then by multiplying the rate of tax. Let us discuss clearly profit and loss problems with the help of the worksheets.
Do Refer:
Profit/Loss Involving Sales Tax Problems Practice Worksheet
Example 1.
A retailer buys an article at a discount of 20% on the listed price from a wholesaler. The shopkeeper marks up the price by 10% on the listed price. A buyer pays Rs 220 to get it after paying a sales tax at the rate of 6 percent on the price asked for find the profit percentage.
Solution:
Let listed price be x Rebate on listed price = 20% of listed price.
Rebated price = x -20% of x
= x – 20x/100 = 80x/100
Effective marked price = listed price + 10% of listed price
= x + 10/100 × x
110x/100
Sales tax = 5% of the effective marked price = 5/100 × Rs 110x/100
= 55x/1000
Total cost = 110x/100 + 55x/1000
But total cost = Rs 220
1155x/100 = 220
Listed price = 19.04
Cost price for shopkeeper = 90x/100
90/100 x 19.04
= 17.136
Effective marked price = 110x/100
= 110/100 × 19.04
= 20.94
His profit = effective marked price – rebated cost price.
Rs(20.94 – 17.13)
= 3.81
His profit percentage = 3.81/17.13 × 100 = 22.24
Example 2.
A shopkeeper buys a carpet for Rs 2100 and marks up its price. A customer buys the carpet for Rs 3000 which includes a sales tax of 6% on the marked-up price. Find the markup percentage on the price of the carpet. Also, find his profit percentage.
Solution:
Let the marked-up price be x.
Cost of the carpet = Rs(2100 + x)
Sales tax = 10% of the marked up price
= 10/100 ×(2100 + x) = 2100+x/10
Total cost = Rs(2100 + x) + 2100 + x/10
21000 + 10x + 2100 + x/10
23100 + 11x/10
But total cost = Rs 3000
23100 + 11x /10 = Rs 3000
23100 + 11x = 30000
11x = 30000 – 23100
x = 33900
Increase in price = 33900
Percentage increase in markup price = 33.900/2100 × 100 = 1614.2
Hence percentage increase in markup price = 1614.2
His profit = increased price – cost price
3000 – 2100 = 900
Hence his profit percentage = 900/2100 × 100 = 42.85
Example 3.
A shopkeeper sells a balloon for Rs 30 including 3% sales tax however the actual rate of sales tax is 2%. Find the extra profit made by the dealer.
Solution:
Price of the balloon inclusive of sales tax = 30.
Let Y be the list price of the balloon.
Rate of sales tax charged by the shopkeeper = 3%
According to the given data
Y + (Y × 3/100) = 30
203Y/100 = 30
2.03Y = 30
Y = 30/2.03 = 14.77
When sales tax is 2% the actual sale price is 14.77 + 14.77 × 2/100
= 15.06
Extra profit = sales price of the article charged by a shopkeeper – actual sale price
Extra profit = 30 – 15.06 = 14.94
Example 4.
Raju Paid 384 sales on a purchase of 398 to find the rate of sales tax.
Solution:
Given that
Sale price = 398
Sales tax paid = 384
Rate of sales tax = sales tax /sale price × 100
= 384/398 × 100
96.48%
Therefore the rate of sales tax = 96.48
Example 5.
The price of a dressing table inclusive of sales tax is 13000 if the sales tax is 5%. Find the basic cost price.
Solution:
Selling price of dressing table = 13000
Rate of sales tax = 5%
Cost price = selling price × 100/100+ rate of sales tax
= 13000×100/100 + 5
= 12380.95
Therefore the basic cost price = 12380.95
Example 6.
Rohit purchases a bracelet costing 530 the rate of sales tax is 4 %. Find the total amount paid by Rohit for the bracelet.
Solution:
Given that
Sale price of bracelet = 530
Rate of sales tax = 4%
Total amount paid by Rohit = 530 + 4% of 530
= 530 + 4/100 × 530
= 530 + 21.2
= 551.2
Therefore the total amount paid by Rohit for the bracelet = 551.2