An import company brought into the country some amplifiers that cost sh 3750 each. The government imposed an import duty 125% and a sales tax of 20%. If the company decided to make a 10% profit on the sales, calculate the selling price of each amplifier.

Question

An import company brought into the country some amplifiers that cost sh 3750 each. The government imposed an import duty 125% and a sales tax of 20%. If the company decided to make a 10% profit on the sales, calculate the selling price of each amplifier.

1 Answer

coyatsi · Answer 1 · 2022-02-09T23:47:11+0000

Answer is Sh 6,250

Workings
Get cost 3,750 x 125% = 4,687.50

Add profit on sales 4,687.50/ (1-10%) = 5,208.33

Add 20% tax 5,208.33 x 1.2 = KSh 6,250

An import company brought into the country some amplifiers that cost sh 3750 each. The government imposed an import duty 125% and a sales tax of 20%. If the company decided to make a 10% profit on the sales, calculate the selling price of each amplifier.

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