Given,
Cost of radio = Rs.2568
Rate of VAT = 7%
Let the reduced price, excluding VAT of the radio = Rs.x
= VAT = 7 % of Rs. x = Rs. \(\frac{7x}{100}\)
Hence,
Selling price of radio = Rs. \(x+\frac{7x}{100}\) = \(\frac{107x}{100}\)
Selling price = Rs.2568… Given
So,
= \(\frac{107x}{100}\) = 2568
= x = \(\frac{2568\times 100}{107}\) = Rs. 2400
Reduction needed in price of radio = Rs.( 2568 – 2400) = Rs.168