I am a carpenter and I make chairs. The cost of materials for a chair is ₹ 475 and I want to have a profit Class 8

I am a carpenter and I make chairs. The cost of materials for a chair is ₹ 475 and I want to have a profit Class 8

Question 1.

I am a carpenter and I make chairs. The cost of materials for a chair is ₹ 475 and I want to have a profit margin of 50%. At what price should I sell a chair? Class 8

Solution:

C.P. of a chair = ₹ 475

Profit = 50% of ₹ 475

= [latex]\frac{50}{100}[/latex] × ₹ 475.

= ₹ [latex]\frac{475}{2}[/latex]

So, S.P. of a chair = ₹ 475 + ₹ [latex]\frac{475}{2}[/latex]

= ₹ 475 + ₹ 237.50

= ₹ 712.50.

Question 2.

The total sales of a company (also called revenue) was ₹ 2.5 crore last year. They had a healthy profit margin of 25%. What was the total expenditure (costs) of the company last year? Class 8

Solution:

Let the cost be ₹ x crore.

So, profit 25% of ₹ x crore

= [latex]\frac{25}{100}[/latex] × ₹ x crore

= ₹ [latex]\frac{x}{4}[/latex] crore.

So, revenue = ₹ [latex]\left(x+\frac{x}{4}\right)[/latex] crore

= ₹ [latex]\frac{5x}{4}[/latex]crore.

Hence, [latex]\frac{5x}{4}[/latex] = 2.5.

or 5x = 10, i.e., x = [latex]\frac{10}{2}[/latex] = 2.

So, cost was ₹ 2 crore.