Question

Do the following sums:
\[C.P = {\rm{Rs}}300\], \[S.P = {\rm{Rs}}350\] then how much rupees profit or loss occur?
A) Profit Rs. 50
B) Profit Rs. 100
C) Profit Rs. 40
D) None of these

Answer 1

Hint:
Here we need to find whether the given cost price will incur profit or loss. We will find the difference between the selling price and cost price. If the selling price will be greater than the cost price we will get profit and if the selling price will be less than the cost price we will incur loss.

Complete step by step solution:
It is given that:
Selling price \[ = {\rm{Rs}}.350\]
Cost price \[ = {\rm{Rs}}.300\]
We can see that the selling price is greater than the cost price of the product. We also know that if the selling price is greater than the cost price, then there will be profit.
 So, we will find the profit by subtracting the value of cost price from the selling price.
\[{\rm{Profit}} = S.P - C.P\]
Now, we will substitute the value of the selling price and the cost price of the product in the above formula to calculate the profit.
\[ \Rightarrow {\rm{Profit}} = {\rm{Rs}}.350 - {\rm{Rs}}.300\]
Subtracting the terms, we get
\[ \Rightarrow {\rm{Profit}} = {\rm{Rs}}.50\]
Hence, the profit made on selling is equal to Rs. 50.

Hence, the correct option is option A.

Note:
To solve this question, we need to know the basic formulas of profit and loss. Cost price is the price at which a product is purchased. Selling price is the price at which the product is sold.
For example, Rima bought three pens for Rs. 3 each and sold at Rs. 5 each.
So we will calculate the cost price by multiplying 3 by Rs. 3.
Cost price of 3 Pens \[ = {\rm{Rs}}.3 \times 3 = {\rm{Rs}}.9\]
Now we will calculate the selling price by multiplying 3 by Rs. 5.
Selling price of 3 Pens \[ = {\rm{Rs}}{\rm{.5}} \times 3 = {\rm{Rs}}{\rm{.15}}\]
As the selling price is higher than the cost price Rima will incur profit. So, her profit will be
\[{\rm{profit}} = 15 - 9 = {\rm{Rs}}.6\]