Determining Cost Price and Selling Price to Achieve 15% Profit
Using the sale price of Rs. 18,700, we can determine the cost price of the plot and the price at which it must be sold to make 15%.
Calculating Cost Price
Given: 15% loss on the sale of Rs. 18,700
The formula to determine the cost price is:
Cost Price = Selling Price / (1 - Loss%)
Changing the Values:
Cost Price = 18,700 / (0.1 - 0.15)
Cost Price = 18,700 divided by 0.85
Cost Price = 22,000 Rupees.
Calculating Selling Price for Profit
Now, we can use the following equation to determine the price at which the land has to be sold to make a 15% profit:
Selling Price = Cost Price + (Profit% * Cost Price)
Changing the Values:
The selling price equals 22,000 plus 0.15 times 22,000.
Selling Price: Rs. 22,000 + Rs. 3,300
Selling Price: 25,300 Rupees
It is necessary to sell the plot for Rs. 25,300 to make a 15% profit.
Additional Points
Cost Price: The cost price is the original purchase price of a good or asset. In this instance, it refers to the money used to buy the plot.
Selling Price: A good or asset is purchased and sold at a cost known as the selling price. It stands in for the proceeds from the sale of the plot.
Loss: Loss occurs when the selling price of an item is less than the cost price. It represents a negative financial outcome for the seller.
Profit: Profit, on the other hand, is the financial gain obtained when the selling price is higher than the cost price. It represents a positive outcome for the seller.
Percentage Loss or Gain: A percentage loss or gain is the loss or profit expressed as a percentage of the cost price. It aids in determining the relative change when compared to the purchased price.
Calculating Selling Price for a Particular Loss
When a loss percentage is given, the selling price can be calculated using the formula below:
Cost price – (loss% * cost price) = selling price
You can determine the selling price using this formula, which takes both the cost price and the loss percentage.
Calculating Selling Price for a Desired Profit
To calculate the selling price needed to achieve a desired percentage profit, you can use the formula:
Selling Price = Cost Price + (profit% * Cost Price)
This formula considers the cost price and the profit percentage, enabling you to determine the selling price required to achieve the desired profit.