Question

A farmer buys a cow for Rs 6000 and after 6 months sells it for Rs 7200 .During this period ,the cow ate fodder worth Rs 1200 and yielded milk worth Rs 700 per month. Calculate jis profit or loss percentage on his initial investment of Rs 6000

Answer 1

Find the total cost incurred:

Cost of the cow = Rs 6000

Cost of the feed = 1200 x 6 = Rs 7200

Total cost = 6000 + 7200 = Rs 13,200

Find the total revenue:

Sales of the cow = Rs 7200

Sales of the milk = 6 x 700 = Rs 4200

Total sales = 7200 + 4200 = Rs 11,400

Find the profit/loss:

Since Rs 13,200 > Rs 11,400

⇒ It is a loss

Loss = 13,200 - 11,400 = Rs 1800

Find the loss percentage:

Profit Percentage = 1800/13200 x 100 = 13.64%

Answer: His loss is 13.64%