Question

The wholesale cost box of 25 pieces of chocolate is 50 AEDYou decide to sel each bar of chocolate with a 20% profit plus 5% VAT tax Based on this information alone, how much will the cost of a single bar be? (2 Marks)

Answer 1

Answer:

Cost of a single bar = 2.52 AED (2.4 AED + 0.12 AED)

Explanation:

Cost of a box of 25 pieces of chocolate = 50 AED

Cost per bar for seller = 50 AED/25 = 2 AED

Selling price = 2.4 AED (2 AED * 1.2)

Plus 5% VAT = 0.12 AED (2.4 AED * 5%)

Cost of a single bar = 2.52 AED (2.4 AED + 0.12 AED)

b) The cost price to the seller is the cost of a box divided by the pieces or bars in the box, = 50 AED / 25 =  2AED

c) The cost price to the buyer is the selling price plus 5% VAT.  This cost includes the seller's cost, profit, and VAT.