Question

Arun buys an old machine for Rs. $2640$ and spends Rs. $295$ on its repairs. Find his gain or loss if he sells the machine for Rs. $3228$. Also, express the gain or loss made as percent.
A) $10\% $
B) $20\% $
C) $30\% $
D) $40\% $

Answer 1

Hint:When the total cost price is less than the total selling price then profit and when the total cost price is greater than the total selling price then loss. Profit or Loss percent is calculated on the total cost price.

Complete step-by-step answer:
We are given that Arun buys an old machine for Rs. $2640$ and spends Rs. $295$ on its repairs.
It means the total cost price will be the sum of the buying price and money spent on repairing.
Therefore, cost price is $2640 + 295 = 2935$
It is also given that he sells the machine for Rs. $3228$.
Therefore, selling price is Rs.$3228$
If we see the selling and the cost price, we observe that the selling price is more than the cost price of the machine.
We know that When the total cost price is less than the total selling price then profit.
Therefore, he made gains.
To evaluate the gain, subtract the total cost price from the selling price of the machine.
Therefore, Gain will be $3228 - 2935 = 293$
Now, we have to find the gain percent.
Gain percent can be evaluated by the following formula:
 $Gain\,\% = \dfrac{{Gain}}{{Total\,CP}} \times 100$
Substitute all the values and evaluate the gain percent.
\[
  Gain\,\% = \dfrac{{293}}{{2935}} \times 100 \\
  Gain\,\% \approx 10.01\% \\
 \]
Therefore, gain percent will be approximate $10\% $
Hence, option (A) is correct.

Note:In these types of questions, the expenses are borne by the shopkeeper, seller etc, all expenses will add up in the cost price of the thing. So always evaluate the total cost price, not just the buying price of the thing.