An oil refinery buys oil at Rs 3600 per barrel. There is a 10% wastage of oil in the process. If the refinery wants to earn a 5% profit then at what price should it sell including an 8% tax on the selling price? (in Rs per barrel)
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option a i.e. 3674
cost of 1 barrel = Rs 3600
SP of 1 barrel = 3600 × 105/100 × 108/100
Since 10% is wasted
SP of remaining barrel = 3600 × 105/100 × 108/100 × 90/100 = Rs 3674