An Exporter expects a Gain of 22.5% on his Cost Price. If in a Week, his Sale was of Rs. 392, What was his Profit?
by
Updated Jun 14, 2024
An Exporter expects a Gain of 22.5% on his Cost Price. If in a Week, his Sale was of Rs. 392, What was his Profit?
To determine the profit made by an exporter expecting a 22.5% gain on his cost price from a sale of Rs. 392, follow these steps:
Gain Percentage: 22.5%
Selling Price: Rs. 392
Profit: The amount by which the selling price exceeds the cost price.
Cost Price Calculation: Using the selling price and gain percentage.
Formula for Cost Price:
The cost price can be found using the formula
Cost Price = (Selling Price)/(100 + Gain Percentage) x 100
Cost Price = (392)/(100 + 22.5) x 100
Cost Price = (392)/(122.5) x 100
Cost Price = Rs.320
Determine the Profit:
Profit is the difference between the selling price and the cost price
Profit = Selling Price − Cost Price
Profit = 392 − 320
Profit = Rs.72
The profit made by the exporter from a sale of Rs. 392, expecting a gain of 22.5% on the cost price, is Rs.72
Profit Calculation from Cost and Selling Price
When calculating profit, it's essential to understand the relationship between cost price, selling price, and profit percentage.
- Cost Price (CP): The amount a seller spends to acquire or produce a product.
- Selling Price (SP): The amount at which the product is sold to customers.
- Profit: The financial gain made from selling the product, calculated as the difference between the selling price and the cost price.
- Profit Percentage: The percentage of the cost price that represents the profit.
Formula for Cost Price:
When given the selling price and the profit percentage, you can calculate the cost price using the formula:
Cost Price = (Selling Price)/(100 + Gain Percentage) x 100
Determining Profit:
Once the cost price is known, the profit can be found by subtracting the cost price from the selling price:
Profit = Selling Price − Cost Price
This process involves basic arithmetic and understanding the relationship between cost price, selling price, and profit.
