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A soap manufacturer is capable of selling soaps at rs.6.36 per piece after adding a VAT at the rate of 6%.still he will make a profit of 20%.what is his

manufacturing price per soap?



If CP=x
then for 20 % profit will be SP= x+20x/100=120x/100
Vat on sp= 120x/100*6/100
Final sp= 120x/100+ (120x/100*6/100)= (120x/100)(106/100)
therefore, (106*120x)/10000=6.36
Therefore, manufacturing cost per soap= Rs.5
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