A retailer bought a compact disc from a manufacturer for $ 200. In addition to that, he paid a 15% sales tax. If he sold the disc to a customer for $ 260, calculate the cash profit he made.
- $ 30.00
- $ 35.00
- $ 32.50
- $ 28.00
- $ 30.50
price of a compact disc with sales tax = 200 + 0.15 × 200
= 200 + 30 = $ 230
As the selling price of the disc = $ 260
Hence, cash profit = 260 - 230 = $ 30