Question

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.

• A. 20%
• B. 17.5%
• C. 19.25%
• D. 18.75%

Answer 1

Answer:

D. 18.75%

First, calculate the total cost price (CP):

• Cost of 12 pairs of shoes = ₹22,400

• Overhead expenses = ₹1,600

$\text{Total CP} = 22400 + 1600$ = ₹24,000

Now, the selling price (SP) is given:

$\text{SP}$ = ₹28,500

Profit

$\text{Profit} = SP - CP = 28500 - 24000$= ₹4,500

Profit Percentage

Use the formula:

$\text{Profit \%} = \frac{\text{Profit}}{\text{Cost Price}} \times 100$

$\text{Profit \%} = \frac{4500}{24000} \times 100 = 18.75\%$

Final Answer:

Profit percentage = 18.75%