Question

Find selling price (SP) if a profit of \[5\% \] is made on
A.A cycle of ₹ 700 with ₹ 50 as overhead charges
B.A lawn mower bought at ₹ 1150 with ₹ 50 as transportation charges
C.A fan bought for ₹ 560 and expenses of ₹ 40 made on its repairs

Answer 1

Hint: In this question, we are going to apply the concept of profit and loss. We are given three questions and in each of the parts, we are told to find the selling price (abbreviated as SP) when the profit on each transaction or in each part is a fixed 5%. So, we calculate the cost price, which is a total of the basic cost of the item (cycle, lawn mower and fan) and its incurring extra charges (overhead charges, transportation charges and repairs).
Formula Used:
We are going to use the formula of profit in this question, which is:
 \[profit = \dfrac{{{\rm{selling\;price }} - {\rm{ cost\;price}}}}{{{\rm{cost\;price}}}} \times 100\]
Since we must calculate only the selling price with profit and cost price given, we can simplify the formula for the value of selling price as:
 \[{\rm{selling\; price}} = \dfrac{{{\rm{cost\; price}} \times {\rm{profit}}}}{{100}} + {\rm{cost \;price}} = {\rm{cost\; price}}\left( {1 + \dfrac{{{\rm{profit}}}}{{100}}} \right)\]

Complete step-by-step answer:
A.In all the cases, the profit percent is 5%.
For this question, the basic price of the item (cycle) is ₹ 700, and the extra charge is ₹ 50.
So, the total cost price is ₹ 750.
Hence, the SP of the cycle is:
 \[\Rightarrow {\rm{SP}} = 750 \times \left( {1 + \dfrac{5}{{100}}} \right) = 750 \times \dfrac{{105}}{{100}} = 787.5\]
So, the correct answer is “₹ 787.5”.

B.In this part, the basic cost of the item (lawn mower) is ₹ 1150, and the extra charges is ₹ 50.
So, the total price is ₹ 1200.
Hence, the SP is:
 \[\Rightarrow SP = 1200 \times \dfrac{{105}}{{100}} = 1260\]
Hence, the SP of the lawn mower is ₹ 1260.
So, the correct answer is “₹ 1260”.

C.For this, the basic cost of the fan is ₹ 560, and the extra charges is ₹ 40.
So, the total price is ₹ 600.
Hence, the SP is:
 \[\Rightarrow SP = 600 \times \dfrac{{105}}{{100}} = 630\]
Hence, the SP of the fan is ₹ 630.
So, the correct answer is “₹ 630”.

Note: So we saw that in solving questions like these, it is absolutely important that we write the cost price as the total of the basic price of the given item and the incurring overhead charges on it. Then we apply the fundamental formula of the profit or loss (as mentioned in the question) and solve for the given asked parameter – profit or loss percent, profit or loss (in actual monetary amount), selling price or cost price. This is what all is needed for us to solve the questions of such type involving the profit or loss conditions.