In a cab service app, 25% before tax earning has to be paid as commission to the app by the driver. Further if the app management launches any offer, only 60% of the cost of offer will be borne by the management and remaining to be taken from the driver. After the discount 18% tax is levied. If the customer obtains 20% offer and pays Rs. 377.6. How much does the driver get paid? (in rupees)
In a cab service app, 25% before tax earning has to be paid as commission to the app by the driver. Further if the app management launches any offer, only 60% of the cost of offer will be borne by the management and remaining to be taken from the driver. After the discount 18% tax is levied. If the customer obtains 20% offer and pays Rs. 377.6. How much does the driver get paid? (in rupees) Correct Answer 268
Payment with 18% tax = 377.6
Payment before tax = 377.6 × 100/ (100 + 18) = Rs. 320
Payment before discount = 320 × 100/ (100 – Discount)
⇒ 320 × 100/ (100 – 20)
⇒ 400
Let the original before tax without discount cost be ‘a’
Original payment to app = 25/100 × a = 0.25a
Original payment to driver = 75/100 × a = 0.75a
Cost of discount = 20/100 × a = 0.2a
60% of this will be taken from app = 60/100 × 0.2a = 0.12a
Remaining amount to be taken from = 0.2a – 0.12a = 0.08a
Remaining payment to driver = 0.75a – 0.08a
⇒ 0.67a i.e. 67% of the before tax payment (with discount) is paid to driver.
In this case
Payment to driver = 67/100 × 400
⇒ Rs. 268
∴ Required payment for driver is Rs. 268.