Question

Ramrao bought a cupboard for Rs 4500 and sold it for Rs 4950. Shamrao bought a sewing machine for Rs 3500 and sold it for Rs 3920. Whose transaction was more profitable?

Answer 1

Cost price of a cupboard = Rs 4500

Selling price of a cupboard = Rs 4950

Since selling price is more than cost price, so there is a profit.

Profit = Selling Price − Cost Price

= 4950 − 4500

= Rs 450

So, Ramrao made a profit of Rs 450 in this transaction.

Cost price of a sewing machine = Rs 3500

Selling price of a sewing machine = Rs 3920

Since selling price is more than cost price, so there is a profit.

Profit = Selling Price − Cost Price

= 3920 − 3500

= Rs 420

So, Shamrao made a profit of Rs 420 in this transaction.

Let x % be the Ramrao's profit and y % be the Shamrao's profit. Then,

`"x"/100 = "Profit"/"cost price" = 450/4500` and 

`"y"/100 = "Profit"/"cost price" = 420/3500`

`=> "x"/100 xx 100 = 450/4500 xx 100` and 

`"y"/100 xx 100 = 420/3500 xx 100`

⇒ x = 10 and y = 12 

So, Ramrao made a profit of 10% on a cupboard and Shamrao made a profit of 12% on a sewing machine.

∴ Shamrao's transaction was more profitable.