A retailer buys a cooler for Rs 1200 and overhead expenses on it are Rs 40.

Question:

A retailer buys a cooler for Rs 1200 and overhead expenses on it are Rs 40. If he sells the cooler for Rs 1550, determine his profit percent.

Solution:

Cooler costs $=$ Rs. 1200

Overhead expenses $=$ Rs. 40

C.P $=$ Rs. $(1200+40)=$ Rs. 1240

S. $\mathrm{P}=$ Rs. 1550

Profit $=\mathrm{SP}-\mathrm{CP}$

$=$ Rs. $(1550-1240)$

$=$ Rs. 310

Profit $\%=\frac{\text { Profit }}{\text { C.P }} \times 100$

$=\frac{310}{1240} \times 100$

$=25 \%$

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