Question

The cost price of a water filter is ₹21500. The installation charges was ₹450 and other extra fittings amounted to ₹275. If the water filter is sold for ₹22500, will there be profit or loss and by how much?

• A. Profit of ₹275
• B. Loss of ₹275
• C. Profit of ₹225
• D. Loss of ₹225

Answer 1

The correct option is A Profit of ₹275

Given:
Cost price of water filter (C.P) = ₹21500
Installation charge = ₹450
Extra fittings charge = ₹275

$\therefore$ Total C.P = 21500 + 450 + 275
= ₹22,225

Selling price of water filter (S.P) = ₹22,500

$\because$ S.P > C.P , the transaction earns a profit.

Profit = S.P - C.P
= ₹22,500 - ₹22,225
= ₹275