Question

A shopkeeper purchased $17$ quintals of potatoes at the rate of $Rs.720$ per quintal. He paid $Rs.140$ as cartage charges and $Rs.120$ as labor charges for moving potatoes to his godown. If he sells the potatoes at the rate of $Rs.8.50$ per kg then calculate profit or loss percent.

Answer 1

Hint:
First find the total cost price by adding the cost of $17$ quintals of potatoes and the other expenses like cartage charges and labor charges. Then find the selling price by multiplying per kg value with the $17$ quintals of potatoes. Then compare between cost price and selling price and find which is greater. If selling price is greater the find profit percent using the formula $\text{profit Percent} = \dfrac{{profit}}{{\text{Cost Price}}} \times 100$ , if the cost price is greater than selling price then find the loss percent using $LossPercent = \dfrac{{Loss}}{{\operatorname{Cos} t\Pr ice}} \times 100$.

Complete step by step solution:
First we need to find the total price that the shopkeeper invested on purchasing potatoes, which is nothing but the cost price.
The cost of $1$ quintal of potatoes is $Rs.720$
Then total price of $17$ quintals of potatoes are $ = 720 \times 17$
$ = 12,240Rs$
Shopkeeper paid for cartage and labor charges are $ = 140 + 120$
$ = 260Rs$
Therefore, the real cost price will be addition of the total price of $17$ quintals of potatoes and the cartage and labor charges, which gives the total cost price as
Cost price $ = 12,240 + 260$
$ = 12,500Rs$
Now, we need to find the selling price of the potatoes.
If the selling price of potatoes is $Rs.8.50$ per kg the for $17$ quintals of potatoes, we get
Selling price $ = 8.50 \times 17 \times 100$ (we multiply $17$ with $100$ because $1$ quintal is equal to $100$ kg)
$ = 14,450Rs$
By comparing cost price and selling price we can see that the selling price is greater than the cost price. Hence, it is a profit for the shopkeeper.
Now to find profit percent, we should first find profit by using the formula
Profit = Selling price – Cost price
$ \Rightarrow $Profit = $14,450 - 12,500 = 1950Rs$
Now, to find profit percent we have,
$\text{profit Percent} = \dfrac{{profit}}{{\text{Cost Price}}} \times 100$
$ \Rightarrow $Profit Percent $ = \dfrac{{1950}}{{12,500}} \times 100$
$ \Rightarrow $Profit Percent $ = 0.156 \times 100$
$ \Rightarrow $Profit Percent $ = 15.6\% $

Therefore, the profit percent is $15.6\% $.

Note:
Whenever the profit or loss question is given, try to find our cost price and selling price properly, if any single data is missed while calculating the cost price or selling price then the whole answer will be wrong.