Calculating the Profit Amount

Oct 13, 2025 by wbrum.org 14 views

Understanding the Problem

In this problem, we are given the cost price of a bicycle, which is Rs 1800, and the profit percentage, which is 12%. We need to find the selling price of the bicycle.

Calculating the Profit Amount

To find the selling price, we first need to calculate the profit amount. The profit amount can be calculated by multiplying the cost price by the profit percentage.

Profit Amount Formula

Profit Amount = Cost Price x Profit Percentage

Applying the Formula

In this case, the cost price is Rs 1800 and the profit percentage is 12%. So, we can calculate the profit amount as follows:

Profit Amount = Rs 1800 x 12% = Rs 1800 x 0.12 = Rs 216

Calculating the Selling Price

Now that we have the profit amount, we can calculate the selling price by adding the profit amount to the cost price.

Selling Price Formula

Selling Price = Cost Price + Profit Amount

Applying the Formula

In this case, the cost price is Rs 1800 and the profit amount is Rs 216. So, we can calculate the selling price as follows:

Selling Price = Rs 1800 + Rs 216 = Rs 2016

Conclusion

Therefore, the selling price of the bicycle is Rs 2016.

Answer

The correct answer is b) Rs 2016.

Explanation

To find the selling price, we first calculated the profit amount by multiplying the cost price by the profit percentage. Then, we added the profit amount to the cost price to get the selling price. The selling price is Rs 2016.

Key Takeaways

To find the selling price, we need to calculate the profit amount by multiplying the cost price by the profit percentage.
Then, we add the profit amount to the cost price to get the selling price.
The selling price is Rs 2016.

Practice Problems

A bicycle is purchased for Rs 1200 and is sold at a profit of 15%. What is its selling price?
A book is purchased for Rs 800 and is sold at a profit of 20%. What is its selling price?
A shirt is purchased for Rs 600 and is sold at a profit of 10%. What is its selling price?

Solutions

Selling Price = Cost Price + Profit Amount Selling Price = Rs 1200 + (Rs 1200 x 15%) Selling Price = Rs 1200 + Rs 180 Selling Price = Rs 1380
Selling Price = Cost Price + Profit Amount Selling Price = Rs 800 + (Rs 800 x 20%) Selling Price = Rs 800 + Rs 160 Selling Price = Rs 960
Selling Price = Cost Price + Profit Amount Selling Price = Rs 600 + (Rs 600 x 10%) Selling Price = Rs 600 + Rs 60 Selling Price = Rs 660
Frequently Asked Questions (FAQs) on Calculating Selling Price ====================================================================

Q1: What is the formula to calculate the selling price?

A1: The formula to calculate the selling price is: Selling Price = Cost Price + Profit Amount.

Q2: How do I calculate the profit amount?

A2: To calculate the profit amount, you need to multiply the cost price by the profit percentage. The formula is: Profit Amount = Cost Price x Profit Percentage.

Q3: What is the profit percentage?

A3: The profit percentage is the percentage of profit made on the cost price. It is usually expressed as a decimal value (e.g., 10% = 0.10).

Q4: How do I calculate the selling price if the profit percentage is given as a percentage?

A4: To calculate the selling price, you need to convert the profit percentage to a decimal value and then multiply it by the cost price. The formula is: Selling Price = Cost Price + (Cost Price x Profit Percentage).

Q5: What is the difference between cost price and selling price?

A5: The cost price is the price at which an item is purchased, while the selling price is the price at which an item is sold.

Q6: How do I calculate the selling price if the cost price is given in a different currency?

A6: To calculate the selling price, you need to convert the cost price to the same currency as the profit percentage. Then, you can use the formula: Selling Price = Cost Price + (Cost Price x Profit Percentage).

Q7: Can I use a calculator to calculate the selling price?

A7: Yes, you can use a calculator to calculate the selling price. Simply enter the cost price, profit percentage, and calculate the selling price using the formula: Selling Price = Cost Price + (Cost Price x Profit Percentage).

Q8: What is the importance of calculating the selling price?

A8: Calculating the selling price is important because it helps you determine the price at which you can sell an item and make a profit. It also helps you to compare prices with other sellers and make informed decisions.

Q9: Can I calculate the selling price if the profit percentage is negative?

A9: Yes, you can calculate the selling price if the profit percentage is negative. However, in this case, the selling price will be less than the cost price.

Q10: How do I round off the selling price to the nearest whole number?

A10: To round off the selling price to the nearest whole number, you can use the formula: Selling Price = Round(Cost Price + (Cost Price x Profit Percentage)).

Conclusion

Calculating the selling price is an essential skill in business and finance. By understanding the formula and the steps involved, you can easily calculate the selling price and make informed decisions. Remember to always use the correct formula and to round off the selling price to the nearest whole number.