Question

Mr Rajesh calculates his profit percentage as a percentage of selling price. he sells an item for rs 150 and calculates his profit percentage to be 20%. what is the true profit percentage?​

Answer 1

Answer:

True Profit percentage = 25 %

Step-by-step explanation:

Let

Profit price = p

Purchasing price = x

we are given that

Selling price = 150

Then

According to condition given in the question

         ( p / 150 ) × 100 = 20           .....(1)

Multiplying equation (1) by 150 on both sides we get

          p × 100 = 20 × 150

⇒        p × 100 = 3000

Dividing by 100 on both sides we get

                   p = 30

We know that

Profit = Selling price - Purchasing price

Putting values we get

                  30 = 150 - x

⇒                  x = 120

So

Purchasing price is 120

NOW

We know that

True Profit percentage = ( profit / purchasing price ) × 100

Putting values we get

True Profit percentage = ( 30 / 120 ) × 100 = 25 %

So

True Profit percentage = 25 %