A salesman buys 15 articles for Rs.10 and sells 10 articles for Rs.15. Determine the percentage profit earned by the salesman.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 125%.
The salesman buys 15 articles for Rs.10, so the cost price of each article = 10/15
C.P. = 10/15 = 2/3
The salesman sells 10 articles for Rs.15, so the selling price of each article = 15/10
S.P. = 15/10 = 3/2
Now, let's calculate the profit percentage using the formula:
Profit Percentage = (SP - CP)/CP × 100
Profit Percentage = (3/2 - 2/3)/2/3 × 100
Profit Percentage = (9 - 4)/6 × 3/2 × 100
Profit Percentage = 5/6 × 3/2 × 100
Profit Percentage = 5/4 × 100 = 500/4 = 125%