HOW TO FIND SELLING PRICE

Selling price when there is a profit

Selling price when there is a loss

Example 1 :

A men buys a color T.V set for $15200 and sells it at a loss of 20%. What is the selling price of the T.V set?

Solution :

Loss is 20% of the cost price

Selling price of color TV  =  15200

Selling price  =  [(100 - loss %) / 100] ⋅ Cost price

  =  [ (100 - 20) / 100 ] ⋅ 15200

  =  (80/100) ⋅ 15200

  =  12160

Hence selling price of TV is 12160.

Example 2 :

Find the S.P. if a profit of 5% is made on

(i) a bicycle of $ 700 with $ 50 as overhead charges.

(ii) a computer table bought at $1150 with $50 as transportation charges.

(iii) a vehicle bought for $2560 and an expense of $140 on repair charges.

Solution :

Cost of bicycle  =  $700

Overhead charges  =  $50

Total cost price of bicycle  =  700 + 50  =  750

Profit  =  5%

Selling price  =  [(100 + profit %) / 100] ⋅ Cost price

  =  [ (100 + 5) / 100 ] ⋅ 750

  =  (105/100) ⋅ 750

  =  787

Hence selling price of bicycle is 787.

(ii)  Cost of computer table  =  $1150

Overhead charges  =  $ 50

Cost price of table  =  1150 + 50

  =  1200

Selling price  =  [(100 + profit %) / 100] ⋅ Cost price

  =  [ (100 + 5) / 100 ] ⋅ 1200

  =  (105/100) ⋅ 1200

  =  1260

(iii)  Cost of vehicle  =  $2560

Cost spent for repair  =  $140

Cost price of table  =  2560 + 140

  =  2700

Selling price  =  [(100 + profit %) / 100] ⋅ Cost price

  =  [ (100 + 5) / 100 ] ⋅ 2700

  =  (105/100) ⋅ 2700

  =  2835

Example 3 :

David purchased a house for $1775000 and spent $125000 on its interior decoration. He sold the house to make a profit of 20%. Find the S.P. of the house.

Solution :

Purchasing price of house  =  $1775000

Cost spent for interior decoration  =  $125000

Cost price  =  1775000 + 125000

  =  1900000

Profit  =  20%

Selling price  =  [(100 + profit %) / 100] ⋅ Cost price

  =  [(100 + 20) / 100] ⋅ 1900000

  =  [120 / 100] ⋅ 1900000

  =  $2280000

Hence the selling price of the house is $2280000.

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