Points to Remember:
- Profit percentage is calculated on the cost price.
- Selling price = Cost price + Profit
Introduction:
This is a simple profit and loss problem in mathematics. Bhavesh’s transaction involves calculating the selling price of a watch given its cost price and the profit percentage earned. Profit is the difference between the selling price and the cost price of a product. Profit percentage is calculated as (Profit/Cost Price) * 100. In this case, we need to determine the selling price given the cost price (â¹1,150) and the profit percentage (5%).
Body:
Calculating the Profit:
First, we need to calculate the absolute profit Bhavesh made. The profit is 5% of the cost price:
Profit = (5/100) * â¹1,150 = â¹57.50
Calculating the Selling Price:
The selling price is the sum of the cost price and the profit:
Selling Price = Cost Price + Profit = â¹1,150 + â¹57.50 = â¹1,207.50
Alternative Calculation (Direct Method):
Alternatively, we can directly calculate the selling price by considering that the selling price is 105% of the cost price (100% cost price + 5% profit):
Selling Price = 105% of â¹1,150 = (105/100) * â¹1,150 = â¹1,207.50
Conclusion:
Bhavesh sold the watch for â¹1,207.50. This problem demonstrates a fundamental concept in business mathematics â calculating profit and selling price. Understanding profit margins is crucial for businesses to ensure profitability and sustainable growth. Accurate calculation of profit and loss is essential for sound financial management and decision-making. This simple example highlights the importance of basic mathematical skills in everyday financial transactions. Promoting financial literacy through education can empower individuals to make informed decisions and manage their finances effectively.