Question 1. Find selling price (SP) if a profit of 5% is made on
(a) a cycle of Rs 700 with Rs 50 as overhead charge.
(b) a lawn mower bought at Rs 1150 with Rs 50 as transportation charges.
(c) a fan bought for Rs 560 and expenses of Rs 40 made on its repairs.
Solution:
(a) ∵ Total cost price = Rs 700 + Rs 50 (Overhead expenses)
= Rs 750
Profit = 5% of Rs 750
= Rs 5/100 * Rs 750 = Rs 5 * 15/2
= Rs 75/2 = Rs 37.50
Now, SP = CP + Profit
= Rs 750 + Rs 37.50
= Rs 787.50
(b) ∵ Total cost price = Rs 1150 + Rs 50 (Overhead expenses)
= Rs 1200
∴ Profit = 5% of Rs 1200
= 5/100 * Rs 1200
= Rs 5 * 12 = Rs 60
Now, SP = CP + Profit
= Rs 1200 + Rs 60
= Rs 1260
(c) ∵ Total cost price = Rs 560 + Rs 40 (Overhead expenses)
= Rs 600
∴ Profit = 5% of Rs 600
= 5/100 * Rs 600
= Rs 5 * 6 = Rs 30
Now, SP = CP + Profit
= Rs 600 + Rs 30
= Rs 630
Question 2. A shopkeeper bought two TV sets at Rs 10,000 each. He sold one at a profit 10% and the other at a loss of 10%. Find whether he made an overall profit or loss.
Solution: Total CP of both TV’s = 2 x Rs 10,000
= Rs 20,000
For 1st TV: CP = Rs 10,000.
Profit rate = 10%
∴ Profit = 10% or Rs 10,000
= 10/100 * Rs 10,000 = Rs 1000
∴ SP = Rs 10,000 + Rs 1000 = Rs 11,000
For 2nd TV: CP = Rs 10,000
Loss rate = 10%
∴ Loss = 10% of Rs 10,000
= 10/100 * Rs 10,000 = Rs 1000
∴ SP = CP – Loss
= Rs 10,000 – Rs 1000 = Rs 9000
Now, Total SP of both the TV’s = Rs 11,000 + Rs 9000
= Rs 20,000
∵ Cost price = Selling price
∴ There is no overall profit or loss.
Question 3. Find the buying price of each of the following when 5% ST is added on the purchase of
(a) A towel at Rs 50
(b) Two bars of soap at Rs 35 each
(c) 5 kg of flour at Rs 15 per kg
Solution:
(a) Cost of the towel = Rs 50
∴ Sales tax on the towel = 5% of Rs 50
= Rs 5/100 * 50 = Rs 2.5
Thus, the buying price of the towel = Rs 50 + Rs 2.5
= Rs 52.5
(b) ∵ Cost of the two soap bars = (Rs 35) * 2 = Rs 70
∴ Sales tax = 5% of Rs 70
= Rs 5/100 * 70 = Rs 3.5
Thus, the buying price = Rs 70 + Rs 3.5
= Rs 73.5
(c) ∵ Cost of 5 kg of flour = Rs 15 * 5 = Rs 75
∴ Sales tax = 5% of Rs 75
= Rs 5/100 * 75
= Rs 375/100 = Rs 3.75
Thus, the buying price = Rs 75 + Rs 3.75
= Rs 78.75
Question 4. If 8% VAT is included in the prices, find the original price of
(a) A TV bought for Rs 13,500 (b) A shampoo bottle bought for Rs 180
Solution:
(a) Cost of TV including VAT = Rs 13500
Rate of VAT = 8%
Let the original price = Rs x
∴ x + 8% of x = Rs 13,500
or x + 8/100 x = Rs 13500
or
or
or
Thus, the original price = Rs 12500.
(b) Let original price = Rs x
∴ Price including VAT = Rs x + 8% of x
But the original price + VAT = Rs 180
∴
or
Thus, the original price = Rs 166 2/3
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