Worksheet on Profit/Loss Involving Sales Tax

Practice the questions given in the worksheet on profit/loss involving sales tax.

1. A shopkeeper buys an article at a distance of 20% on the listed price from a wholesaler. The shopkeeper marks up the price by 10% on the listed price. A buyer pays $ 231 to get it after paying a sales tax at the rate of 5% on the price asked for. Find the profit percentage.

2. A retailer buys an article at a commission of 10% on the listed price from a wholesale dealer. He marks up the price by 10%. Due to difficulty in selling it at the raised price, he announces a discount of 5% to the buyer. If the buyer purchases it at $ 451.44 inclusive of a sales tax of 8% on the price asked for then, find

(i) the listed price

(ii) the profit percentage for the retailer

3. A shopkeeper buys an article for $ 800 from a wholesaler at a discount of 20% on the listed price. He marks up the listed price by 10% and sells it at $ 1166 which includes a sales tax on the marked-up price.

(i) find the rate of sales tax.

(ii) Find the profit percentage for the shopkeeper.

4. A retailer buys an article from a wholesaler at a discount. The retailer sells it at $ 1210 inclusive of a sales tax at the rate of 10% on the listed price. If he makes a profit of 14% by selling it, find the rate of discount the retailer received from the wholesaler.

Answers for the worksheet on profit/loss involving sales tax are given below.

Answers:

1. 37.5%

2. (i) $ 400

(ii) 16$\frac{1}{9}$%

3. (i) 6%

(ii) 37.5%

4. 12.28%

● Sales Tax and Value Added Tax