Question

A shopkeeper sells some toys at Rs.250 each. What percent profit does he make? To find the answer, which of the following information given in Statements I and II is/are necessary?
 I. Number of toys sold.
II. Cost price of each toy.
Choose the correct option.

A. Only I is necessary
B. Only Il is necessary
C. Both I and II are necessary
D. Either I or II is necessary
E. None of these

Answer 1

Hint: Profit percentage is found using the formula\[Profit\%=\dfrac{Profit\times 100}{C.P.}\,\], here C.P is the cost price. Using this formula we will get the answer.

Complete step-by-step answer:
In the question, we have to find how many statements are required to find the profit percentage if the shopkeeper sells some toys at Rs.250 each. So, here we will use the profit percentage formula and that is given as:\[Profit\%=\dfrac{Profit\times 100}{C.P.}\,\], which says that the profit percentage is dependent on the cost price (C.P.) and the selling price only.
So here the “statement I- Number of toys sold” is not required as this gives the revenue and days nothing about the profit.
 Next, the “statement II. Cost price of each toy ” will give the profit as profit is selling price minus the cost price. So we can find the profit percentage from this information.
Hence the correct answer is option B. Only Il is necessary

Note: It is to be noted that the profit percentage is very different from the profit margin. Since from the formula of profit margin we can tell that it only depends on the profit parameter and profit depends on cost price and selling price therefore only the cost price is necessary as selling price is already given.