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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? |
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Answer» Cost price of goods = Rs 50000 Transportation cost and octroi = Rs 7000 ∴ Total cost price for buying goods = Cost price of goods + Transportation cost and octroi = 50000 + 7000 = Rs 57000 Selling price of goods = Rs 65000 Selling price is greater than the total cost price ∴ Abraham made a profit. Profit = Selling price – Total cost price = 65000 – 57000 = Rs 8000 ∴ Abraham made a profit of Rs 8000. |
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