Question

A coal merchant makes a profit of $20$% by selling firewood at Rs. $25$ per quintal. If he sells the firewood at Rs. $22.50$ per quintal. what is his profit per cent on the whole investment?

• A. Profit $=8\%$
• B. Profit $=6\%$
• C. Loss $=10\%$
• D. Loss $=12\%$

Answer 1

The correct option is A Profit $=8\%$

Given, Selling price of $1$ quintal firewood $=Rs25$

Now, Profit % $=20$ %
$=>\frac{S.P.-C.P.}{C.P.}\times 100=20$
$=>\frac{25-C.P.}{C.P.}\times 100=20$
$=>25-C.P.=0.2C.P.$
$=>1.2C.P.=25$
$=>C.P.=Rs\frac{250}{12}=Rs\frac{125}{6}$
If $SP=Rs22.5$

Profit % $=\frac{S.P.-C.P.}{C.P.}\times 100$
$=\frac{22.5-\frac{125}{6}}{\frac{125}{6}}\times 100$
$=\frac{135-125}{125}\times 100$
$=\frac{10}{125}\times 100=8$ %