Question

Abraham bought goods worth Rs 50000 and spent Rs 7000 on transport and octroi. If he sold the goods for Rs 65000, did he make a profit or a loss? How much?

Answer 1

Cost price of the goods = Rs 50000
Money spent on transport and octroi = Rs 7000
Total expenses while buying goods = cost of goods + money spent on transport and octroi
= 50000 + 7000
= Rs 57000
That is, total cost price = Rs 57000
Selling price of the goods = Rs 65000
Since selling price is more than cost price, so there is a profit.
Profit = Selling price − Total cost price
= 65000 − 57000
= Rs 8000
∴ Abraham made a profit of Rs 8000 in this transaction.