Respuesta :
Answer:
24.1%
Step-by-step explanation:
The selling price includes a VAT (which is a form of tax) and a discount.
A Vat is a form of tax which increases the price of a good and a discount reduces the price.
The vat increases price by 10% and the tax reduces the price by 5%.
So the original selling price before all these adjustments would be
20,900 x ( 1 -0.1 + 0.05)
20,900 x 0.95 = 19855
Mark up = (selling price - cost price) / cost price
(19855 - 16,000) / 16,000 = 0.241 = 24.1%
The market price of the article is above the cost price of the article by 24.1%.
The given parameters for the calculation of the market price:
The cost price of the article = 16,000
Selling Price = 20,900
VAT = 10%
Discount = 5%
The original selling price before the mentioned adjustment:
[tex]\begin{aligned}\text{Original Selling Price} = \text{Selling Price} \times (1 - rate)\end{aligned}[/tex]
[tex]\begin{aligned}\text{Original Selling Price} =\$ 20,900 \times ( 1 -0.1 + 0.05)\end{aligned}[/tex]
[tex]\begin{aligned}\text{Original Selling Price} &= \$20,900 \times 0.95 \\&= \$19,855\end{aligned}[/tex]
[tex]\begin{aligned}\text{Marked Price} = \dfrac{\text{Selling Price} - \text{Cost Price}}{\text{Cost Price}} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Marked Price}&=\dfrac{ (\$19855 - \$16,000)}{ \$16,000} \\&= 0.241 \end{aligned}[/tex]
To convert it to the percentage the number is multiplied by 100.
Therefore the market price is more than the cost price by 24.1%
To know more about the calculation of the market price, refer to the link below:
https://brainly.com/question/16971434
