Question

A shop keeper buys an article for Rs. 440 and his overhead expenses are Rs. 60. If he sells the article for Rs. 550, then his profit % is :
1. 8%
2. 9%
3. 6%
4. 10%

Answer 1

Correct Answer - Option 4 : 10%

Given :- 

A shop keeper buys an article for Rs. 440 and his overhead expenses are Rs. 60

Selling price of article = Rs. 550

Concept :-

Total cost price = original cost price + overhead expenses 

Profit = Selling price - Cost price 

Profit % = (Profit/CP) × 100 

Calculation :-

⇒ Total cost price = 440 + 60 

⇒ Total cost price = 500

⇒ Profit = 550 - 500 

⇒ Profit = Rs. 50

⇒ Profit % = (50/500) × 100

⇒ Profit % = 10%

∴ Profit % = 10%