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The Khadra family owns a clothing store. When a new consignment of clothing arrives, Mr Khadra marks up all the ladies clothing by \( 60 \% \), all the men's clothing by \( 45 \% \) and all the toddlers clothing by \( 30 \% \). He bought ladies cardigans for R230, men's suits for R2 350 and tracksuits for toddlers at R99 each. a) Calculate the retail price for each of these items and then add \( 15 \% \) for VAT. b) Mr Khadra pays his son, Abdul, R 400 per month for helping out in the family store. Sales have improved and therefore Mr Khadra will increase Abdul's wage by \( 15 \% \) next month. What will Abdul earn per month after this increase?

Ask by Harrington Ramirez. in South Africa
Feb 19,2025

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Tutor-Verified Answer

Answer

a) - **Ladies Cardigans**: R423.20 - **Men's Suits**: R3,918.63 - **Tracksuits for Toddlers**: R147.93 b) Abdul will earn **R460** per month after the 15% wage increase.

Solution

Given: - Ladies cardigans were bought for R230. - Men's suits were bought for R2,350. - Tracksuits for toddlers were bought at R99 each. a) Calculate the retail price for each item and then add 15% for VAT. 1. Ladies cardigans: - Mark up: 60% - Retail price = 230 + (230 * 0.60) = 230 + 138 = R368 - VAT = 368 * 0.15 = R55.20 - Total price = 368 + 55.20 = R423.20 2. Men's suits: - Mark up: 45% - Retail price = 2350 + (2350 * 0.45) = 2350 + 1057.50 = R3407.50 - VAT = 3407.50 * 0.15 = R511.13 - Total price = 3407.50 + 511.13 = R3918.63 3. Tracksuits for toddlers: - Mark up: 30% - Retail price = 99 + (99 * 0.30) = 99 + 29.70 = R128.70 - VAT = 128.70 * 0.15 = R19.23 - Total price = 128.70 + 19.23 = R147.93 b) Mr. Khadra pays his son, Abdul, R400 per month for helping out in the family store. Mr. Khadra will increase Abdul's wage by 15% next month. What will Abdul earn per month after this increase? 1. Abdul's current wage = R400 2. Increase in wage = 15% of R400 = 0.15 * 400 = R60 3. Abdul's new wage = R400 + R60 = R460 Therefore, Abdul will earn R460 per month after the increase.

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To calculate the retail prices first, we need to apply the markup percentages: 1. **Ladies Cardigan** - Cost Price: R230 - Markup: 60% - Retail Price = Cost Price + (Cost Price × Markup) - Retail Price = R230 + (R230 × 0.60) = R230 + R138 = R368 - Adding 15% VAT: R368 + (R368 × 0.15) = R368 + R55.20 = R423.20 2. **Men's Suit** - Cost Price: R2,350 - Markup: 45% - Retail Price = R2,350 + (R2,350 × 0.45) = R2,350 + R1,057.50 = R3,407.50 - Adding 15% VAT: R3,407.50 + (R3,407.50 × 0.15) = R3,407.50 + R511.13 = R3,918.63 3. **Toddler's Tracksuit** - Cost Price: R99 - Markup: 30% - Retail Price = R99 + (R99 × 0.30) = R99 + R29.70 = R128.70 - Adding 15% VAT: R128.70 + (R128.70 × 0.15) = R128.70 + R19.30 = R148 Now, let's calculate Abdul's new wage after the 15% increase: - Current Wage: R400 - Increase: R400 × 0.15 = R60 - New Wage: R400 + R60 = R460 So, Abdul will earn R460 per month after the increase.

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