Question

Q1.Find the selling price if a profit of 5% is made on: a) A cycle of Rs 7000 with Rs 500 as overhead charges.

Answer 1

Cost of the cycle = ₹ 7000

Overhead expenses = ₹ 500

Total cost = ₹ ( 7000 + 500) = ₹ 7500

Profit = 5%

SP = (100 + profit%)/100 × 7500

= (100 + 5)/100 × 7500

= 105/100 × 7500

= 7875

Hence,

the selling price of the cycle is ₹ 7875.