Question

From a wholesaler, Santosh bought 400 eggs for Rs 1500 and spent Rs 300 on transport. 50 eggs fell down and broke. He sold the rest at Rs 5 each. Did he make a profit or a loss? How much?

Answer 1

Cost price of 400 eggs = Rs 1500

Money spent on transport = Rs 300

Total cost price = cost of 400 eggs + Transport charges

= 1500 + 300

= Rs 1800

Number of eggs broken = 50

∴ Number of remaining eggs = 400 − 50 = 350

Selling price of 1 egg = Rs 5

∴ Selling price of 350 eggs = 5 × 350 = Rs 1750

That is, total selling price = Rs 1750

Since total selling price is less than total cost price, so there is a loss.

Loss = Total cost price − Total selling price

= 1800 − 1750

= Rs 50

∴ Santosh suffered a loss of Rs 50 in this transaction.