Question

A vendor purchases binder clips at \[12\] for \[Rs.60\]. How many clips should he sell for \[Rs.60\] to earn a profit of \[20\%\]?

Answer 1

Hint: Firstly, we have to find the cost price of one clip. After finding the cost price of one clip, we have to calculate the profit on each clip. Then, we have to find the selling price of each clip with the help of profit and cost price. At last, we have to find the number of clips that are to be sold at \[Rs.60\] and that would be our required answer.

Complete step-by-step solution:
Now let's have a brief regarding the profit with respect to cost price. Generally, profit margin is calculated upon the selling price. It is the percentage of selling price that is converted into profit percentage. If we are given the profit, in order to find the cost price, the formula used would be \[CP=\dfrac{\left( SP\times 100 \right)}{\left( 100+\text{profit percent} \right)}\].
Now let us find out the number of clips the vendor has to sell for \[Rs.60\] to earn a profit of \[20\%\]
Firstly, we will be calculating the cost price of one clip-
Cost of \[12\] clips \[=Rs.60\]
The cost of one clip \[=\dfrac{60}{12}=5\]
\[\therefore \] The cost of one clip is \[Rs.5\].
Now, the profit on each clip would be
\[20\%\] profit \[=\]\[\dfrac{20}{100}\times 5=Rs.1\]
Now ,we will be finding the selling price of each clip and that would be-
Selling price= Cost price + Profit
\[\Rightarrow 5+1=Rs.6\]
Now let us find out the number of clips that are to be sold at \[Rs.60\].
Number of clips = \[\dfrac{60}{6}=10\]
\[\therefore \] Number of clips to be sold are \[10\].

Note: We can also find the percentage of profit or loss after calculating the respective profit or loss. The profit and loss calculation are applied in everyday life for the calculation of business purposes, marks and grades also in calculating interest amounts.