Question

Ramrao bought a cupboard for Rs 4500 and sold it for Rs 4950. Shamrao bought a sewing machine for Rs 3500 and sold it for Rs 3920. Whose transaction was more profitable?

Answer 1

Cost price of a cupboard = Rs 4500
Selling price of a cupboard = Rs 4950
Since selling price is more than cost price, so there is a profit.
Profit = Selling Price − Cost Price
= 4950 − 4500
= Rs 450
So, Ramrao made a profit of Rs 450 in this transaction.
Cost price of a sewing machine = Rs 3500
Selling price of a sewing machine = Rs 3920
Since selling price is more than cost price, so there is a profit.
Profit = Selling Price − Cost Price
= 3920 − 3500
= Rs 420
So, Shamrao made a profit of Rs 420 in this transaction.
Let x% be the Ramrao's profit and y% be the Shamrao's profit. Then,
$\frac{x}{100}=\frac{\mathrm{profit}}{\mathrm{cost}\mathrm{price}}=\frac{450}{4500}$ and $\frac{y}{100}=\frac{\mathrm{profit}}{\mathrm{cost}\mathrm{price}}=\frac{420}{3500}$
⇒$\frac{x}{100}\times 100=\frac{450}{4500}\times 100$ and $\frac{y}{100}\times 100=\frac{420}{3500}\times 100$
⇒x = 10 and y = 12
So, Ramrao made a profit of 10% on a cupboard and Shamrao made a profit of 12% on a sewing machine.
∴ Shamrao's transaction was more profitable.