Question

Ranjan bought a second hand scooter at Rs.6000. He spent Rs,300 on it and sold it to Vineet at a profit of 10%. Vineet sold the scooter to Mukesh at a loss of 10%. What price did Mukesh buy the scooter?

Answer 1

Hint: For solving this question you should know about the gross profit percentage and the general terms of the market. In this problem we will first find the CP of the scooter and then add the expenses which Ranjan did on it and then we will find the price at which Vineet bought it. And then we will finally find the selling price at which Mukesh bought that scooter.

Complete step by step answer:
So according to our question Ranjan bought a scooter and spent some money on it. Then he sold it again to Vineet at a profit and Vineet sold it to Mukesh at a loss. So, we will find the final price for Mukesh. If we see the definition of gross profit percentage, then the gross profit percentage is the margin earned (in a form of percentage) on a product or service after applying the total production cost to the revenue earned. The total cost includes the cost of labour and materials and overheads. So, the gross profit percentage helps to identify the probability of the organisation’s products or services and is often time leveraged as a benchmark against competitor or industry standards.
If we use the mean of the gross profit percentage then the gross profit percentage is an easy calculation to determine the overall probability of an organisation’s product or services. Simply speaking, the percentage is a reliable indicator of the organisation’s competency when producing a good or service.
Now if we find how the gross profit percentage is used and calculated, the GPP is calculated by the formula:
$100\times \left\{ \dfrac{\left( \text{Sales}-\left( \text{total labour+materials+overhead cost} \right) \right)}{\text{Sales}} \right\}$
So, For Ranjan, CP of the scooter = Rs.6000
Overhead expenses = Rs.300
Actual CP = Rs.6300
Profit % = 10%
Profit = 10% of 6300
$=\dfrac{10}{100}\times 6300$
= Rs.630
Now, SP = CP + profit
= 6300 + 630 = Rs.6930
Now for Vineet, CP of the scooter = Rs.6930
Loss % = 10%
So, loss $=\dfrac{10}{100}\times 6930$
= Rs.693
So, SP = CP - loss
= 6930 - 693 = Rs.6237
So Mukesh bought the scooter for Rs.6237.

Note: While solving these types of questions you should know the formula of gross profit percentage and find the gross profit with the help of the correct formula very carefully. This is because if any term is wrong here, then that will make our complete solution wrong.