A shopkeeper sells rice. He buys it at a rate 15% less than the selling price. His total sales value for a month is Rs.5,50,000 and he pays Rs.8,000 as rent of the shop at the start of the month. His profit percentage in the month is ________.
Show answer & explanation
Correct answer: A
Explanation
The Correct answer is option 1 i.e.15.7%.
Calculations:
Let the total sales be the Selling price = 100x
Cost price 15% less than Selling price
⇒ 100x - 15x = 85x
Cost price = 85% of 550000
⇒ 467500
He also paid the rent thus
Total cost price = 467500 + 8000 = 475500
Profit = 550000 - 475500
⇒ 74500
Profit percentage = (74500/475500) × 100
⇒ 15.7%