Question

A furniture merchant purchased furniture for $ 23,000 and spent $2000 as transportation charges. If he wants to make 4% profit, what would be selling price of furniture?​

Answer 1

Answer: $26,000

Step-by-step explanation:

Given:

Purchase price (PP) = $23000

Transportation Charges (TC) = $2000

Profit Percent = 4%

Calculate the total cost price.

CP = PP + TC

     = $23000 + $2000

     = $25000

Calculate the Profit.

$\begin{aligned}\text{Profit percent}&=\frac{\rm{Profit}}{CP}\times100\\4&=\frac{\rm{Profit}}{25000}\times100\\\rm{Profit}&=4\times\frac{25000}{100}\\&=1000 \end{aligned}$

Calculate the selling price.

$\begin{aligned}\text{Profit}&=SP-CP\\\ 1000&=SP-\ 25000\\SP&=\ 1000+\ 25000\\&=\ 26000 \end{aligned}$