Sharad bought one quintal of onions for Rs.2000, later he sold them all at the rate of Rs.18 per kg. Did he make a profit or incur a loss? How much was it?
Hint: Cost of 1 quintal is given as Rs.2000. Convert 1 quintal into kg. Find the rate at which the onions were sold. Compare the cost price and selling price. From the formula of loss, find the loss incurred by Sharad in selling them at Rs.18 per kg. Complete step-by-step solution: It is given that the cost of 1 quintal of onion is Rs.2000. We know 1 quintal = 100kg. The selling price of 1 kg onion is given at the rate of Rs.18 per kg. 1 kg = Rs.18 100 kg = = Rs.1800 for 100 kg of onion. Selling price of 100 kg of onion = Rs.1800 We know the cost price of onion = Rs.2000. Selling price of onion = Rs.1800. Here, cost price is the price at which the onions are purchased and selling price is the price at which the onions are sold. Here, the cost price is greater than the selling price. i.e. A person bought 100 kg onion at Rs.2000 and sold it in the 100 kg of onions for Rs.1800. Therefore, he incurred a loss. Loss = cost price – selling price = Rs.2000 – Rs.1800 = Rs.200 He experienced a loss of Rs.200 in selling the onions for Rs.18 per kg. Note: Sharad can only make a profit if he sells the onions at more than Rs.20 per kg. If he sells onions for Rs.19 per kg, the selling price will be () = Rs.1900 for 100 kg, which is still less than the cost price. He will still have loss of Rs.100. If he sells onion at Rs.20 per kg, the selling price becomes Rs.2000, which is equal to the cost price. Therefore, he won’t have a profit nor loss.