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Q62 (CISF/2023) Economy › Basic Concepts & National Income

A businessman lost 20% of his goods due to rain. The remaining items were sold at a profit of 50%. The businessman earned an overall profit of:

Explanation

To calculate the overall profit, let us assume the total quantity of goods is 100 units and the cost price (CP) per unit is ₹1. Thus, the total CP is ₹100.

  • Goods lost: 20% of 100 = 20 units. These units are lost and yield no revenue.
  • Remaining goods: 100 - 20 = 80 units.
  • Selling Price (SP) per unit: The remaining items are sold at a 50% profit. SP = CP + 50% of CP = 1 + 0.5 = ₹1.50.
  • Total SP: 80 units × ₹1.50 = ₹120.

The overall profit is determined by comparing the total SP to the total CP:
Overall Profit = Total SP - Total CP = ₹120 - ₹100 = ₹20.
Profit Percentage = (20 / 100) × 100 = 20%.

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