Illustration
If sales tax is at 20%, then the cost structure would be:
Net amount + sales tax = Gross amount
100 20 120
Once that is established then you can easily move between any of the sales figures
using proportions
1)Net amount = 280: therefore
Net amount + sales tax = Gross amount
100 20 120
280 ? ?
sales tax = 280 x 20/100 = 56, and
gross amount = 280 x 120/100 = 336
2) Tax = 40: therefore
Net amount + sales tax = Gross amount
100 20 120
? 40 ?
net amount = 40 x100/20 = 200, and
gross amount = 40x 120/20 = 240
3) Gross amount = 840: therefore
Net amount + sales tax = Gross amount
100 20 120
? 40 ?
sales tax = 840 x 20/120 = 140, and
net amount = 840 x 100/120 = 700
Please explain example 2 and 3 with some detail because i am unable to understand them ?
FIA Forums
Can someone here please explain this ?
Yo bro,
This is pretty easy.
You have three values (percentages) representing three 'items'. That is:
100 represents NP (Net Price), 20 represents T (T) and 120 represents Gross Price (GP).
Solve the questions like you would a math problem.
We go abt it like this:
Take the given value
Divide it by the number it is represented with (see above)
And then Multiply it by no. representing the value you WANT to figure out.
Ex2:
You have Tax = 40.
Divide it by no. representing T ie by 20
If you want to find out GP, multiply this by 120
If you want NP, multiply by 100
That's it!
So for GP = T*120/20 = 40*120/20 = 240
For NP = T*100/20 = 40*100/20 = 200
Ex3:
You have GP = 840
Divide it by representing digits aka by 120
For finding T, multiply by 20
For NP, multiply by 100
Hence, it's like:
T = 840*20/120 = 140
NP = 840*100/120 = 700
So... Got it? If you don't, don't hesitate to tell, yeah?
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