Question

Nagpur is a branch of Kolhapur. The The Nagpur sales goods with profit 25% on cost.
Total sale of Nagpur branch during the year Rs.5,00,000 The profit from Nagpur branch is
a)Rs.5,00,000 b)Rs.4,00,000
c)Rs.1,00,000 d) Rs. 10,000
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Answer 1

Answer:

• The Profit from Nagpur branch is Rs.1,00,000

Solution:

We are given that:

1. Profit Percentage = 25%
2. Selling Price = Rs.5,00,000

From the given, we are going to find the profit.

To find the profit, first let us calculate the cost price of Nagpur Branch. We know that,

➩ C.P = (S.P×100)/(100+Profit%)

➩ C.P = (500000×100)/(100+25)

➩ C.P = 50000000/125

➩ C.P = Rs.4,00,000

Hence, the cost price of Nagpur Branch is Rs.4,00,000. Since, we know C.P and S.P of the Nagpur Branch, the profit from Nagpur Branch would be:

➩ Profit = S.P-C.P

➩ Profit = 5,00,000-4,00,000

➩ Profit =Rs.1,00,000

Hence, the profit from the Nagpur Branch is Rs.1,00,000.

The Correct Option is C.