Question 1099315
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.