Profit Percentage Calculation
To determine the profit percentage, we first calculate the total cost price (CP) and then the profit amount.
1. Cost Price Calculation
The total cost price is the sum of the initial purchase price and any additional expenses incurred.
- Purchase Price: \text{₹}18,000
- Additional Expenses (Transportation & Repairs): \text{₹}2,000
- Total Cost Price (CP) = Purchase Price + Additional Expenses
Calculation:
$CP = \text{₹}18,000 + \text{₹}2,000 = \text{₹}20,000$
2. Profit Amount Calculation
Profit is the difference between the selling price (SP) and the total cost price (CP).
- Selling Price (SP): \text{₹}25,000
- Cost Price (CP): \text{₹}20,000
- Profit = SP - CP
Calculation:
$Profit = \text{₹}25,000 - \text{₹}20,000 = \text{₹}5,000$
3. Profit Percentage Calculation
The profit percentage is calculated using the following formula:
$Profit Percentage = \left( \frac{\text{Profit}}{\text{CP}} \times 100 \right) \%$
Substitute the calculated values into the formula:
$Profit Percentage = \left( \frac{\text{₹}5,000}{\text{₹}20,000} \right) \times 100 \%$
Simplify the fraction:
$Profit Percentage = \left( \frac{1}{4} \right) \times 100 \%$
Convert the fraction to a decimal:
$Profit Percentage = 0.25 \times 100 \%$
Final Result:
$Profit Percentage = 25\%$
The shopkeeper's profit percentage is 25%.
Important Questions from Profit & Loss (Notes)
- A person incurs a loss of 10% by selling a watch for Rs. 450. At what price should the watch be sold to earn 10% profit?
- A shopkeeper bought an item for ₹7825 and marked it at 30% higher than the cost price. If he sells the item by allowing 20% discount, then his profit percentage will be :
- A bought an article at a certain price and sold it at 10% profit. B bought the same article at a price 10% lesser than A and sold it at ₹18 lesser than A. B's gain percentage in this deal is 20%. At what price B bought the article?
- A dealer buys two articles X and Y for ₹500 each. He marks each of them at the same price. He sells X by giving two successive discounts of 50% and 28% and still earns ₹958 as profit. If he sells Y at a single discount of 77%, then what is the profit percentage on Y?
- A shopkeeper earned a profit (in ₹) by selling an item, which is three times the discount offered (in ₹). If the discount offered is 6.25%, what is his profit percentage ?
