Question

A retailer buys a radio for Rs 225. His overhead expenses are Rs 15. If he sells the radio for Rs 300, determine his profit percent.

Answer 1

Cost price of radio = Rs.225

Overhead expenses = Rs. 15

Total cost = cost price + overhead expenses = 225+15 = Rs. 240

Selling price of radio = Rs.300

Gain = 300 – 240 = Rs. 60

= Gain % = \(\frac{gain}{cost\,price}\)x 100 = \(\frac{60}{240}\)x 100 = 25 %