Question

A man purchased a bag of rice containing \[70kg\] for \[Rs175\]. He sold it at the rate of \[Rs2.75\] per \[kg\]. Then the profit or loss in \[\% \] is \[ - - - - - - - - - - - - \].
A) \[12\% \] loss
B) \[10\% \] gain
C) \[12\% \] gain
D)C\[10\% \] loss

Answer 1

Hint: In the given question, we have been given the cost price of some given quantity of a given item. Then, we have been given the selling price of the item. We have to calculate the profit percent or the loss percent. We are going to calculate it by first finding the cost price of the item per given unit, then we are going to find the selling price of the item per given unit, then we are going to apply the profit percent or loss percent formula (depending on if selling price is more than cost price) and calculate the answer.

Complete step by step answer:
In the given question, we have been given that the purchase (cost) price of \[70kg\] rice is \[Rs175\].
Hence, the \[CP\] of one kilogram is \[\dfrac{{175}}{{70}} = 2.5\]
Given, the \[SP\] of one kilogram is \[2.75\]
Clearly, this is a profit, and the profit earned is,
\[profit = \dfrac{{SP - CP}}{{CP}} \times 100\]

So, here we have, \[P = \dfrac{{2.75 - 2.5}}{{2.5}} \times 100 = 10\% \]
Hence, the correct option is \[10\% \] gain.

Note:
So, we saw that in solving questions like these, it is absolutely important that we write the cost price as the total of the basic price of the given item and the incurring overhead charges on it. Then we apply the fundamental formula of the profit or loss (as mentioned in the question) and solve for the given asked parameter – profit or loss percent, profit or loss (in actual monetary amount), selling price or cost price. This is what all is needed for us to solve the questions of such type involving the profit or loss conditions.