If you happen to be viewing the article Ram buys some paper wind fans at 4 per rupee. He then buys same number of paper wind fans from another shop at 5 per rupee. He puts them all together and sells them at 4 per rupee. Will he make a profit or incur a loss? How much? ? on the website Math Hello Kitty, there are a couple of convenient ways for you to navigate through the content. You have the option to simply scroll down and leisurely read each section at your own pace. Alternatively, if you’re in a rush or looking for specific information, you can swiftly click on the table of contents provided. This will instantly direct you to the exact section that contains the information you need most urgently.
Ram bought paper wind fans for 4 rupees each and then got some more at 5 rupees each. He combined them all and sold them for 4 rupees each. Find out if he made money or lost some, and how much!
Ram buys some paper wind fans at 4 per rupee. He then buys same number of paper wind fans from another shop at 5 per rupee. He puts them all together and sells them at 4 per rupee. Will he make a profit or incur a loss? How much?
Ram will make a profit of 100/9 %. Here’s why:
Explanation
Steps:
Cost Price (CP):
- Let x be the number of paper wind fans Ram buys at both shops.
- For the first batch, he spends 4x rupees (4 rupees/fan * x fans).
- For the second batch, he spends 5x rupees (5 rupees/fan * x fans).
- Total CP for 2x fans = 4x + 5x = 9x rupees.
Selling Price (SP):
- Ram sells all 2x fans at 4 rupees each, earning 8x rupees (4 rupees/fan * 2x fans).
Profit/Loss:
- Calculate the difference between SP and CP: SP – CP = 8x – 9x = -x rupees.
- A negative value indicates a loss. However, we need to consider the average cost per fan.
Average Cost Price per Fan:
- Combine the fans from both shops: Total fans = 2x.
- Calculate the average CP per fan: (4x + 5x) / 2x = 9/2 rupees.
Profit Calculation:
- Now, compare the selling price (4 rupees/fan) with the average CP (9/2 rupees/fan).
- SP – Average CP = 4 – (9/2) = 1/2 rupees profit per fan.
Percentage Profit:
- Calculate the percentage profit: (Profit/Average CP) * 100% = (1/2) / (9/2) * 100% = 100/9%
Therefore, Ram makes a profit of 11 1/9% on each fan he sells.
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What is Profit and its Formula?
Profit, in simple terms, is the financial gain earned from a business transaction or investment. It represents the positive difference between the revenue earned and the expenses incurred.
There are two main types of profit commonly used in business:
Gross Profit: This is the profit earned after deducting the direct costs associated with producing or acquiring a product or service. It’s calculated as:
Gross Profit = Total Revenue – Cost of Goods Sold (COGS)
Net Profit: This is the final profit remaining after all expenses (both direct and indirect) are subtracted from the total revenue. It’s calculated as:
Net Profit = Total Revenue – Total Expenses
Additional Formulas:
Profit Margin: This expresses the net profit as a percentage of the total revenue, indicating the efficiency of a business in converting sales into profit. It’s calculated as:
Profit Margin = (Net Profit / Total Revenue) * 100%
Profit Percentage: This expresses the profit as a percentage of the cost price, indicating the markup on an item. It’s calculated as:
Profit Percentage = (Profit / Cost Price) * 100%
Remember, the specific formula and terminology used might differ slightly depending on the context and accounting practices.
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Source: Math Hello Kitty
Categories: Math
