A shopkeeper purchases a product for Rs.100 and sells it making a profit of 10%. The customer resells it to the same shopkeeper incurring a loss of 10%. In these dealings the shopkeeper makes
Rs.11
Shopkeeper's Profit Calculation Explained
Let's analyze the transactions step by step to determine the shopkeeper's total profit in these dealings.
Transaction 1: Shopkeeper sells to Customer
- The shopkeeper purchases the product for Rs. 100. This is the initial Cost Price (CP) for the shopkeeper.
- The shopkeeper sells the product making a profit of 10%.
- Profit amount on the first sale $=$ 10% of Rs. 100
- Profit amount $=$ $\frac{10}{100} \times 100 = \text{Rs. } 10$
- The Selling Price (SP) for the shopkeeper in the first transaction is CP $+$ Profit
- SP1 $=$ Rs. 100 $+$ Rs. 10 $=$ Rs. 110
- This Rs. 110 is the price the customer paid for the product.
Transaction 2: Customer resells to Shopkeeper
- The customer bought the product for Rs. 110. This is the Cost Price for the customer.
- The customer resells the product back to the same shopkeeper incurring a loss of 10%.
- Loss amount for the customer $=$ 10% of the customer's CP (Rs. 110)
- Loss amount $=$ $\frac{10}{100} \times 110 = \text{Rs. } 11$
- The Selling Price for the customer (which is the price the shopkeeper pays to buy it back) is Customer's CP $-$ Loss
- Customer's SP $=$ Rs. 110 $-$ Rs. 11 $=$ Rs. 99
- So, the shopkeeper buys the product back from the customer for Rs. 99. This is the Cost Price for the shopkeeper in the second transaction (CP2).
Shopkeeper's Total Profit in These Dealings
To find the shopkeeper's total profit from these two dealings, we need to look at the net money received and paid by the shopkeeper in the transactions involving the customer.
- In the first transaction, the shopkeeper received Rs. 110 from the customer.
- In the second transaction, the shopkeeper paid Rs. 99 to the customer to buy the product back.
The shopkeeper started with the product (initial cost Rs. 100) and ended up with the product again after the two transactions. The net financial outcome for the shopkeeper is the difference between the money received from the customer and the money paid back to the customer.
- Total money received by shopkeeper from customer dealings $=$ Rs. 110
- Total money paid by shopkeeper in customer dealings $=$ Rs. 99
- Net profit for the shopkeeper $=$ Total money received $-$ Total money paid
- Net profit $=$ Rs. 110 $-$ Rs. 99 $=$ Rs. 11
Therefore, in these dealings, the shopkeeper makes a profit of Rs. 11.
Important Questions from Profit and Loss
Rohit buys 8 pens and 4 pencils for Rs. 2400. He sells pencils at a profit of 20 percent and pens at the loss of 10 percent. If his overall profit is Rs. 240, then what is the sum of the cost price of one pen and one pencil?
A man sells a car to his friend at the loss of 10 %; who in return sells it for Rs. 54000 making a profit of 20 %. What was the initial value of the car?
By selling a horse for Rs. 670, a tradesman would lose 5%. At what price must he sell it to gain 5%?
An article was sold at a loss of 24%. If it were sold for Rs. 1,596 more, then there would have been a gain of 18%, The cost price of the article is:
The cost price of an article is Rs.6,450. If it sold at a profit 16%, how much would be its selling price?
