Question 16 of 45beginner🔧 ApplyNumerical2 marks

I am a carpenter and I make chairs. The cost of materials for a chair is ₹475 and I want to have a profit margin of 50%. At what price should I sell a chair?

Correct Answer

Given: Cost of materials = ₹475 Profit margin = 50%

Formula: SP = CP + (Profit% × CP)

Calculation: Profit = 50% of 475 = 0.50×4750.50 \times 475 = ₹237.50 Selling Price = 475 + 237.50 = ₹712.50

Alternative Method: SP = 150% of 475 = 1.5×4751.5 \times 475 = ₹712.50

Answer: Selling Price = ₹712.50

Exercise: Figure it Out (Section 3) | Q: 2 | (Page Page 19)
For More Understanding

Explanation

The chapter shows that selling price with a profit margin is calculated as: SP = CP + (Profit% × CP) = CP × (1 + profit%/100).

Solution Steps

  1. Cost of materials = ₹475

  2. Profit margin = 50%

  3. Profit = 50% of 475 = ₹237.50

  4. Selling Price = 475 + 237.50 = ₹712.50

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