Question

PLEASE HELP ME !!!

A shopkeeper bought a ratio from a wholesaler for $25. In addition, he paid a value-added tax of 15% on the cost price. He then sold a radio for $31.50. Calculate the cash profit made by the shopkeeper.

Answer 1

Thus, the cash profit made by the shopkeeper is $2.75

Explanation:

(V) Calculate the cash profit made by the shopkeeper

By formula Profit = cost price - selling price

Since , bought a radio from a wholesaler for $25, he paid tax of 15% , sold a radio for $31.50.

So, Tax = 25/100 = 0.25 x 15 = $3.75

Total $25 + 3.75 = $28.75

Profit = $31.50 - $28.75 = $2.75

Thus, the cash profit made by the shopkeeper is $2.75