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 Profit = 0.25S. The Cost of Sales is the Selling Price minus the Profit: Cost of Sales = S - 0.25S = 0.75S From part (a), we found the Cost of Sales to be Rs. 1,40,000. Rs. 1,40,000 = 0.75S To find S, we divide the Cost of Sales by 0.75: S = Rs. 1,40,0000.75 S = Rs. 1,40,000(3)/(4) S = Rs. 1,40,000 × (4)/(3) S = Rs. (5,60,000)/(3) S ≈ Rs. 1,86,666.67 The Tender Price should be: Rs. 1,86,666.67 That's 2 down. 3 left today — send the next one.