Question

Raman bought a sewing machine for Rs.2400. He sold it for Rs.3000. Calculate his
A) profit
B) profit percent.

Answer 1

Hint: Selling price (S.P.): This is the price at which an article is sold.
Cost price (C.P.): This is the price at which an article is purchased.
When selling price is more than cost price, we calculate profit by mentioned formula
profit = selling price - cost price
We can calculate the profit percentage occurred by the below mentioned formula as cost price and profit is given.
Profit percentage formula: The profit percent can be calculated as:
\[\Pr ofit\% = 100 \times \dfrac{{\Pr ofit}}{{\operatorname{Cos} t\;\Pr ice}}\]

Complete step-by-step answer:
Raman bought the sewing machine at a price of = Rs. 2400.
So, this is our cost price.
Raman sold the sewing machine at a price of Rs. 3000.
So, this is our selling price.
As our selling price is more than cost price we will calculate the profit: -
profit = selling price - cost price = 3000 – 2400 = Rs. 600
Now we know the profit value so we can calculate the profit percentage by substituting the value of cost price and profit to the formula of profit percentage mentioned in the hint.
\[\Pr ofit\% = 100 \times \dfrac{{\Pr ofit}}{{\operatorname{Cos} t\;\Pr ice}}\]
\[ \Rightarrow \Pr ofit\% = 100 \times \dfrac{{600}}{{2400}}\]
\[ \Rightarrow \Pr ofit\% = \dfrac{{600}}{{24}} = 25\% \].

So, Raman profit and profit percentage for a sewing machine is
profit = Rs. 600
profit percent = 25%

Note: The gain or loss is always reckoned on the cost price.
In calculating profit percent and loss percent, sometimes after purchasing an article, we have to pay some more money for things like transportation, repairing charges, local taxes, these extra expenses are called overheads.
For calculating the total cost price, we add overheads to the purchase price or cost price.