A retailer buys 12 pairs of shoes for ₹22,400. His overhead expenses are ₹1,600. If he earns ₹28,500 from the sale of these 12 pair of shoes, determine his profit percentage.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 18.75%.
Cost price of 12 pairs = ₹22,400
Overhead expenses = ₹1,600
Selling price = ₹28,500
Total cost price = 22,400 + 1,600 = ₹24,000
Profit = Selling price - Total cost price = 28,500 - 24,000 = ₹4,500
Profit percentage = (Profit / Total cost price) × 100 = (4,500 / 24,000) × 100 = 18.75%