Question

A retailer buys a radio for $Rs225.$ His overhead expenses are $Rs15.$ If he sells the radio for $Rs300$, determine his profit percent.

Answer 1

Given that the cost price of the radio is $Rs225$, the selling price is $Rs300$ and overhead expenses are $Rs15.$

$\therefore \text{Total C.P.}=\text{C.P}.+\text{overhead expenses}$
$=Rs225+Rs15$
$=Rs240$

$\because S.P.>C.P.$

$\therefore \text{Profit}=S.P.-C.P.$
$=Rs300-Rs240$
$=Rs60$

And profit percent $=\frac{\text{Profit}}{\text{C.P.}}\times 100$

$=\frac{60}{240}\times 100$

$=\frac{1}{4}\times 100$

$=25\%$

Hence, the profit percent is $25\%$.