Question

I bought an item for Rs.5 and sold it for Rs.10. My profit is 25%. I have no overhead charges.

• A. True
• B. False

Answer 1

The correct option is B

False

The overhead charges become a part of the cost price.

Cost Price = Purchase cost of item + overhead charges (transporation, labour, etc)

So, without overhead charges the profit percentage = $\frac{sellingprice-costprice}{costprice}$ = $\frac{Rs.10-5}{5}$ x 100 = 100%

So, the profit% is 100%.

Hence, 25% can’t be profit %.