Question 15 of 45beginner🔧 ApplyNumerical2 marks

If a shopkeeper buys a geometry box for ₹75 and sells it for ₹110, what is his profit margin with respect to the cost?

Correct Answer

Given: Cost Price (CP) = ₹75 Selling Price (SP) = ₹110

Formula: Profit = Selling Price - Cost Price Profit Percentage = (Profit/Cost Price) × 100

Calculation: Profit = ₹110 - ₹75 = ₹35 Profit Percentage = (35/75) × 100 = 46.67%

Answer: Profit margin = 46.67%

Exercise: Figure it Out (Section 3) | Q: 1 | (Page Page 19)
For More Understanding

Explanation

The chapter explains that profit margin is calculated with respect to the cost price. Profit = Selling Price - Cost Price, and Profit Percentage = (Profit/Cost Price) × 100.

Solution Steps

  1. Cost Price (CP) = ₹75

  2. Selling Price (SP) = ₹110

  3. Profit = SP - CP = 110 - 75 = ₹35

  4. Profit Percentage = (35/75) × 100 = 46.67%

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