Question

Ramrao bought a cupboard for Rs 4500 and sold it for Rs 4950. Shamrao bought a sewing machine for Rs 3500 and sold it for Rs 3920. Whose transaction was more profitable?

Answer 1

Cost price of a cupboard = Rs 4500

Selling price of a cupboard = Rs 4950

Since selling price is more than cost price, so there is a profit.

Profit = Selling Price − Cost Price

= 4950 − 4500

= Rs 450

So, Ramrao made a profit of Rs 450 in this transaction.

Cost price of a sewing machine = Rs 3500

Selling price of a sewing machine = Rs 3920

Since selling price is more than cost price, so there is a profit.

Profit = Selling Price − Cost Price

= 3920 − 3500

= Rs 420

So, Shamrao made a profit of Rs 420 in this transaction.

Let x % be the Ramrao's profit and y % be the Shamrao's profit. Then,

${\displaystyle \frac{\text{x}}{100}=\frac{\text{Profit}}{\text{cost price}}=\frac{450}{4500}}$ and 

${\displaystyle \frac{\text{y}}{100}=\frac{\text{Profit}}{\text{cost price}}=\frac{420}{3500}}$

${\displaystyle \Rightarrow \frac{\text{x}}{100}\times 100=\frac{450}{4500}\times 100}$ and 

${\displaystyle \frac{\text{y}}{100}\times 100=\frac{420}{3500}\times 100}$

⇒ x = 10 and y = 12 

So, Ramrao made a profit of 10% on a cupboard and Shamrao made a profit of 12% on a sewing machine.

∴ Shamrao's transaction was more profitable.