Asoap manufacturer is capable of selling soaps at 6.36 per piece after

1.	Asoap manufacturer is capable of selling soaps at 6.36 per piece afteradding the VAT at the rate of6%. Still, he will make a profit of 20% on the sale what is his manufacturing cost per soap?
Answer» CP = ?SP = Rs6.36VAT = 6%Profit = 20%SP = CP + profit amount + VAT amount=CP + 20% CP + (120%CP) * 6% 6.36 = CP [ 1 + 0.20 + 1.20 * 6 /100 ] CP = 6.36 / 1.272 = Rs5.00

Asoap manufacturer is capable of selling soaps at 6.36 per piece afteradding the VAT at the rate of6%. Still, he will make a profit of 20% on the sale what is his manufacturing cost per soap?

Answer»

CP = ?SP = Rs6.36VAT = 6%Profit = 20%SP = CP + profit amount + VAT amount=CP + 20% CP + (120%CP) * 6% 6.36 = CP [ 1 + 0.20 + 1.20 * 6 /100 ]

CP = 6.36 / 1.272 = Rs5.00