Question

A trader buys a T.V for Rs. 7000 from Mumbai and sells it in Pune for Rs. 7600. If his overhead expenses amount to Rs. 1000, find his profit or loss in this transaction and express it in percentage.

• A. Loss = Rs. 400
• B. Loss = Rs. 500
• C. Loss% = 15%
• D. Loss% = 5%

Answer 1

Answer: (A), (D)

The correct options are
A

Loss = Rs. 400

D

Loss% = 5%

Total C.P of the T.V for trader = Original cost + Overhead expenses
= Rs. 7000 + Rs. 1000 = Rs. 8000
Given, selling price = Rs. 7600
Since, total C.P > S.P, so there is a loss.
Hence, loss = Rs. 8000 - Rs. 7600 = Rs. 400
Loss % = $\frac{Loss}{TotalC.P}\times 100$ = $\frac{Rs.400}{Rs.8000}\times 100$ = 5%