Question

Ram buys a wrist watch for Rs. 250 and spends Rs. 50 on its repairs. If he sells same for Rs. 450, find his profit percent.\[\]
A.10%
B.20%
C.40%
D.50%

Answer 1

Hint: We find the cost price (CP) for Ram by adding the purchase cost of the wrist watch Rs.250 and cost for repair Rs.50. We are given selling price SP as Rs.450 We find the profit amount $\text{Profit}=\text{SP}-\text{CP}$ and the percent profit using the formula $\%\text{Profit}=\dfrac{\text{Profit}}{\text{CP}}\times 100$.\[\]

Complete step by step answer:
We know that the cost price abbreviated as CP of an article is the price at which the article is bought or the price that was spent for making the article from materials plus additional expenditure. The additional expenditure may taxes, transportation , repairs etc.\[\]
The selling price abbreviated as SP is the price at which the article is sold. If the selling price is greater than cost price then we say the sellers earned profit or gain. The profit amount is given by
\[\text{Profit}=\text{SP}-\text{CP}\]
The percentage profit is calculated on cost price as
\[\%\text{Profit}=\dfrac{\text{Profit}}{\text{CP}}\times 100\]
We are given in the question that Manjit bought a wrist watch for Rs.250 and paid Rs.50 for its transportation. The cost price for Manjit is the sum of the amount he spent for buying the wrist watch Rs.12160 and the amount he spent for repairs as additional expenditure Rs.50. So we have the cost price in rupees is
\[\text{CP}=250+50=\text{Rs}.300\]
We are further given the question that he sold wrist watches for Rs.450. We are asked to find the profit per cent. Let us first find the profit as
\[\text{Profit}=\text{SP}-\text{CP}=\text{Rs}\text{.450}-\text{Rs}\text{.300=Rs}\text{.150}\]
We use the formula for profit per cent and have
\[\%\text{Profit}=\dfrac{\text{Profit}}{\text{CP}}\times 100=\dfrac{150}{300}\times 100=50\]
So we found the profit per cent for Ram as 50%.

So, the correct answer is “Option D”.

Note: We note that of if selling price would have less than cost price Ram would have earned loss as $ \text{Loss}=\text{CP}-\text{SP}$ and loss percent would have been $ \% \text{Loss}=\dfrac{\text{Loss}}{\text{CP}}\times 100 $. We must be careful that percent profit or percentage loss is always calculated on cost price not on selling price unless stated otherwise in the question.