(a) A man earns N150,000 per annum. He is allowed a tax free pay on N40,000. If he pays 25 kobo in the naira as tax on his taxable income, how much has he l...

Answer Details

(a) Tax payable. Taxable income \(= 150{,}000 - 40{,}000 = \text{N}110{,}000\). Tax at 25 kobo (\(\text{N}0.25\)) per naira:

\[\text{Tax} = 0.25\times110{,}000 = \text{N}27{,}500.\]

\[\text{Amount left} = 150{,}000 - 27{,}500 = \text{N}122{,}500.\]

(b) Percentage profit on the whole. The 650 copies are marked at N75 to yield 30% profit, so the total cost price is

\[\text{CP} = \frac{650\times75}{1.30} = \frac{48{,}750}{1.30} = \text{N}37{,}500.\]

Sales received: 300 copies at 5% discount \(= 300\times(75\times0.95) = 300\times71.25 = \text{N}21{,}375\); the other 350 copies at N75 \(= 350\times75 = \text{N}26{,}250\).

\[\text{Total sales} = 21{,}375 + 26{,}250 = \text{N}47{,}625.\]

\[\text{Profit} = 47{,}625 - 37{,}500 = \text{N}10{,}125.\]

\[\%\text{ profit} = \frac{10{,}125}{37{,}500}\times100 = 27\%.\]