Sambhajirao bought a machine from a factory for Rs. 80000. He paid the octroi tax of Rs. 1600 and spent Rs. 800 on transport besides Rs. 300 on porterage. He sold the machine for one lakh rupees. How much was his profit?
Total expenses while buying the machine = Cost of machine + Octroi + Transport + Porterage
= 80000 + 1600 + 800 + 300
= Rs. 82700
That is, the total cost price is Rs. 82700.
Profit = Selling price - Total cost price
= 100000 - 82700
= Rs. 17300
∴ Sambhajirao made a profit of Rs. 17300 in this transaction.
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- Concepts of Cost Price, Selling Price, Total Cost Price, and Profit and Loss, Discount, Overhead Expenses and GST