Calculating Profit Percentage for Rice Sales: A Detailed Guide
Profit and loss percentage calculations are fundamental concepts in business and commerce, especially when dealing with bulk purchases and sales. In this article, we will walk through a practical example of how to determine the profit percentage of selling a bag of rice. This guide ensures clarity and accuracy in financial calculations, making it suitable for individuals and businesses engaging in such transactions.
The Problem Statement
A man purchased a bag of rice containing 70 kilograms for Rs 175. He sold it at the rate of Rs 2.75 per kilogram. The question is, what is the profit percentage?
A Step-by-Step Solution
To solve this problem, let's break it down into manageable steps:
Determine the Cost Price (CP):First, find the cost price of 1 kilogram of rice. This is calculated by dividing the total cost by the total weight of the rice. Determine the Selling Price (SP):
Next, calculate the total selling price by multiplying the selling price per kilogram by the total weight. Calculate the Profit:
Profit is calculated as the difference between the selling price and the cost price. Calculate the Profit Percentage:
This is done by using the formula: Profit Percentage (Profit / Cost Price) x 100.
Calculation Process
Let's apply the steps to the given problem:
Determine the Cost Price (CP):CP of 70 kg rice Rs 175. Hence, the cost price of 1 kg of rice is Rs 175 / 70 Rs 2.50. Determine the Selling Price (SP):
The selling price of 1 kg is Rs 2.75. Therefore, the total selling price for 70 kg is Rs 2.75 x 70 Rs 192.5. Calculate the Profit:
Profit SP - CP Rs 192.5 - Rs 175 Rs 17.5. Calculate the Profit Percentage:
Profit Percentage (Profit / Cost Price) x 100 (Rs 17.5 / Rs 175) x 100 10%.
Conclusion
Based on the calculations, the man made a profit of 10% on the sale of 70 kilograms of rice that he purchased for Rs 175 and sold at Rs 2.75 per kilogram. This systematic approach ensures that the result is accurate and aligned with the principles of profit and loss calculations.
Related Keywords: Profit Percentage, Cost Price, Selling Price, Percentage Calculation