Understanding the Toy Profit Calculation

This problem asks us to find the selling price (SP) of a toy after a certain profit percentage is applied to its cost price (CP). We are given the cost price and the profit percentage.

Given Information:

• Cost Price (CP) of the toy = Rs. 66
• Profit Percentage = 15%

Goal:

Find the Selling Price (SP) of the toy.

Calculating the Profit Amount

The profit is calculated as a percentage of the cost price. The formula for calculating the profit amount is:

\( \text{Profit} = \left( \frac{\text{Profit Percentage}}{100} \right) \times \text{CP} \)

Let's plug in the given values:

\( \text{Profit} = \left( \frac{15}{100} \right) \times 66 \)

\( \text{Profit} = 0.15 \times 66 \)

Calculating the product:

\( 0.15 \times 66 = 9.90 \)

So, the profit amount is Rs. 9.90.

Calculating the Selling Price

The selling price is the sum of the cost price and the profit amount. The formula is:

\( \text{SP} = \text{CP} + \text{Profit} \)

Now, we add the profit we just calculated to the original cost price:

\( \text{SP} = 66 + 9.90 \)

\( \text{SP} = 75.90 \)

Therefore, the selling price of the toy is Rs. 75.90.

Alternative Method using Selling Price Percentage

Alternatively, we can directly calculate the selling price. If there is a 15% profit, it means the selling price is 100% of the cost price plus an additional 15%, making it 115% of the cost price.

Selling Price (SP) as a percentage of CP = \( (100 + \text{Profit Percentage})\% \)

Selling Price (SP) as a percentage of CP = \( (100 + 15)\% = 115\% \)

Now, calculate 115% of the cost price:

\( \text{SP} = \left( \frac{115}{100} \right) \times \text{CP} \)

\( \text{SP} = 1.15 \times 66 \)

Calculating the product:

\( 1.15 \times 66 = 75.90 \)

This confirms that the selling price is Rs. 75.90.

Summary of Calculation Steps:

1. Identify the Cost Price (CP) and Profit Percentage.
2. Calculate the Profit Amount by multiplying the CP by the Profit Percentage (converted to a decimal).
3. Add the Profit Amount to the CP to find the Selling Price (SP).

Result

The selling price of the toy is Rs. 75.90.

Revision Table: Cost Price, Selling Price, and Profit

Additional Information on Profit and Loss Calculations

Profit and loss calculations are fundamental concepts in business and everyday finance. They help determine the financial outcome of a transaction.

• When an item is sold for more than it cost, a profit is made. The profit is the difference between the selling price and the cost price.
• When an item is sold for less than it cost, a loss is incurred. The loss is the difference between the cost price and the selling price.
• Profit and loss percentages are almost always calculated based on the cost price unless explicitly stated otherwise. This provides a consistent basis for comparing the profitability of different items or transactions.
• Understanding how to calculate profit and loss percentages is crucial for setting prices, analyzing business performance, and making informed financial decisions.

In this specific problem, the profit was 15% of the Rs. 66 cost price. This profit was then added to the cost price to arrive at the final selling price of Rs. 75.90.