Question

If the cost price of an article is $Rs.1500$ and its selling price is three times the cost price, then what is the profit?

Answer 1

Hint:
Profit is the balance of money saved by the person after all the expenses. Here the profit can be considered as the difference of cost price and selling price.

Useful formula:
For any article bought, the profit can be calculated by subtracting the cost price from the selling price, provided there is no other expense.
That is, \[{\text{Profit}} = SP - CP\]
where $SP$ and $CP$ represent the selling price and cost price respectively.

Complete step by step solution:
Given that the cost price of an article is $Rs.1500$ and its selling price is three time the cost price.
Let the cost price be $CP$ and selling price be $SP$.
So, we have, $CP = 1500$
And $SP = 3CP$
Substituting for $CP$ we get,
$ \Rightarrow SP = 3 \times 1500 = 4500$
For any article bought, the profit can be calculated by subtracting the cost price from the selling price, provided there is no other expense.
That is, \[{\text{Profit}} = SP - CP\]
Substituting the values of $SP$ and $CP$ we have,
\[{\text{Profit}} = 4500 - 1500 = 3000\]

$\therefore $ The profit is $Rs.3000$.

Additional information:
If the cost price exceeds the selling price, it is said to have a loss. And this loss can be calculated by subtracting selling price from cost price.

Note:
Here in the question it is only mentioned about cost price and selling price. If not, there can be other expenses like repairing the article. In those cases, we have to add these expenses to the cost price to calculate the total amount of money spent by the person.