A trader prints price-tags after having decided to sell his product at 25% profit over the cost price that his supplier has just informed. He later realises that a 10% GST would also be payable on the product sourced from the supplier. What is his profit now, in percent?
A trader prints price-tags after having decided to sell his product at 25% profit over the cost price that his supplier has just informed. He later realises that a 10% GST would also be payable on the product sourced from the supplier. What is his profit now, in percent?
Solution
✅ Correct Option: 1
Let the cost price informed by the supplier
The trader prints price tags at 25% profit over this cost price.
Since the tags are already printed, the selling price is locked at 125.
A 10% GST is payable on the product sourced from the supplier, so the actual cost becomes:
Profit % is calculated on the actual cost (total amount spent):
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BMSAT Kozhikode 2025