Question

1. The manager of a bottle shop makes 25% profit on the cost price of all bottles of wine sold in the shop. She charges $12 for a bottle of Open View reisling. A hotel room service charged $30 for a similar bottle of Open View reisling.
a) How much profit does the hotel room service make from selling 1 bottle of Open View reisling?
b) What percentage profit on their cost price does the hotel room service make?

2. All goods for sale in England are subject to a 17.5% value added tax(VAT) . Julian bought two pairs of pants for £188, which included VAT. How much of the pants was the VAT?

Why is 14.89% of the price of goood in the UK give the value of the 17.5% VAT in the price?

Answer 1

since the hotel buys the wine at $12 and sells it at $30, it makes $18 on a bottle of wine.

18/12 = 1.5, so it makes 150% profit, based on cost.

1.175p = 188
p = 160
tax = 28

1.175p = s
p = .851s
s - .851s = .149s = 14.9%