Answer: The C.P is Rs. 4000 and the M.P is Rs. 4800
Step-by-step explanation: To find the C.P and M.P, we need to understand what VAT and discount mean. VAT stands for value-added tax, which is a type of tax that is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Discount is a reduction in the original price of a product or service.
We are given that the item is marked 20% above the C.P, which means that the M.P is 120% of the C.P. We can write this as:
M.P = 1.2 * C.P
We are also given that the item is sold allowing 10% discount and adding 13% VAT at Rs. 5085. This means that the final selling price (S.P) is 90% of the M.P, plus 13% of that amount as VAT. We can write this as:
S.P = (0.9 * M.P) + (0.13 * 0.9 * M.P) S.P = 1.017 * M.P
We can substitute the value of S.P as Rs. 5085 and the value of M.P as 1.2 * C.P and solve for C.P:
5085 = 1.017 * 1.2 * C.P = 5085 / (1.017 * 1.2) C.P ≈ 4000
Therefore, the C.P is Rs. 4000.
To find the M.P, we can use the formula:
M.P = 1.2 * C.P M.P = 1.2 * 4000 M.P = 4800
Therefore, the M.P is Rs. 4800.
Hope this helps, and have a great day! =)