Question 1119290
cost = 100.
gross sales tax = 7% (i think that's what this is).


p = (r-c)/c


p = price
r = revenue or sale price
c = cost.


storekeeper wants a profit of 37%.


.37 = (r-100) / 100


multiply both sides of this equation by 100 to get:


37 = r - 100


add 100 to both sides of this equation to get:


137 = r


that's the sale price.


7% GST on that would be equal to .07 * 137 = 9.59.


the item must be price at 137 plus 9.59 tax = 146.59.


price includes tax.


item is sold for 146.59.


vendor pays sales tax to government and keeps the rest for himself.


vendor keeps 137.


profit is 137 - 100 = 37.


percent profit is 37/100 = .37 = 37%.