Question

A vendor purchases binder clips at $12$ for $Rs.60.$ How many clips should h sell for $Rs.60$ to earn a profit of $20\%$?

Answer 1

Step 1: Find the cost price of the one clip and profit on one clip:

$12clips=Rs60$

$$\begin{gathered} 1clip=60÷12 \\ =Rs5 \end{gathered}$$

The profit of the one clip is

$$\begin{gathered} 20\%profit=0.2x5 \\ =Rs1 \end{gathered}$$

Step 2: Find the selling price of the clip.

Selling Price $=$ Cost Price $+$ Profit

Selling Price $=5+1=Rs6$

Now, find the number of clips to sell for $Rs60:$

Number of clips$=60÷6=10$

Hence, the vendor needs to sell $10$ clips for the price of $Rs60.$