Before the budget, a businessman had increased the price of his product by 12%. In the budget, a 10% sales tax (to be paid by the seller) was imposed on that product. As a result, the profit ultimately increased by Tk 64. What was the original selling price?
A
Tk 8,500
B
Tk 8,000
C
Tk 9,000
D
Tk 9,500
Correct Answer: Tk 8,000
Let, Original selling price be x After increaseing 12% then the price x + 12 of x = 1.12x Now, vat to be paid 10% of 1.12x = 0.112x Need profit = 0.12x - 0.112x = 0.008x According to question, 0.008x = 64 x = 8000 Tk.