Calculate the Tender Price if the Cost of Sales is Rs. 1,40,000 and the company aims for a 25% profit on the selling price. (Part b of question 22)

Here's the completed solution for question 22:

b. Tender Price

Step 3: Calculate the Tender Price.
The company aims for a profit of 25% on the selling price.
Let the Selling Price (Tender Price) be $S$.
The profit is $25\%$ of the selling price, so $\text{Profit} = 0.25S$.
The Cost of Sales is the Selling Price minus the Profit:

$$\text{Cost of Sales} = S - 0.25S = 0.75S$$

From part (a), we found the Cost of Sales to be Rs. 1,40,000.

$$\text{Rs. } 1,40,000 = 0.75S$$

To find $S$, we divide the Cost of Sales by 0.75:

$$S = \frac{\text{Rs. } 1,40,000}{0.75}$$ $$S = \frac{\text{Rs. } 1,40,000}{\frac{3}{4}}$$ $$S = \text{Rs. } 1,40,000 \times \frac{4}{3}$$ $$S = \text{Rs. } \frac{5,60,000}{3}$$ $$S \approx \text{Rs. } 1,86,666.67$$

The Tender Price should be:

$$\text{Rs. } 1,86,666.67$$