Question

Mary bought 40 pens and sold them at ₹8 each. If the total cost price is ₹200, then find the profit made or loss incurred in the transaction.

• A. Profit of ₹120
• B. Loss of ₹120
• C. Loss of ₹100
• D. Profit of ₹200

Answer 1

The correct option is A

Profit of ₹120

Mary bought 40 pens and sold them at ₹8 each.

$\therefore$ Total SP $=40\times ₹8$ = ₹320

We are given that the cost price (CP) is ₹200.

Since SP > CP, a profit is made.

Also, profit amount is calculated as:

Profit = SP - CP = ₹(320 - 200) = ₹120