1.

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?

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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