SOLUTION: A storekeeper buys an article for $120. He wishes to make a profit of $30 when he sells it and he knows that the sale is subject to a sale of tax of 20%. For how much does the stor
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Question 1099315: A storekeeper buys an article for $120. He wishes to make a profit of $30 when he sells it and he knows that the sale is subject to a sale of tax of 20%. For how much does the storekeeper need to sell the article to a customer?
(Is the sale tax is 20% of the article and profit? Or is it just the cost of the article?)
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the profit is included in the sale price.
the tax is not included in the sale price.
the bill to the customer is equal to the sale price plus the tax on the sale price.
his cost is 120.
his profit is 30.
the sale price is 120 + 30 = 150
the tax on the sale price is 20% of 150 = 30
the bill to the customer is 150 + 30 = 180.
customer pays 180.
vendor sets aside 30 of that for the tax.
vendor keeps 150.
cost to the vendor was 120.
profit to the vendor is 30.
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