A merchant bought a batch of goods for $600 and sold them at a total of $720. Wh

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Question: A merchant bought a batch of goods for $600 and sold them at a total of $720. What is the profit percentage? (2023)

Options:

Correct Answer: 20%

Exam Year: 2023

Solution:

Profit = Selling Price - Cost Price = 720 - 600 = 120. Profit Percentage = (120/600) * 100 = 20%.

A merchant bought a batch of goods for $600 and sold them at a total of $720. What is the profit percentage? (2023)

A merchant bought a batch of goods for $600 and sold them at a total of $720. What is the profit percentage? (2023)

Step 1: Identify the Cost Price (CP) of the goods. In this case, CP = $600.
Step 2: Identify the Selling Price (SP) of the goods. In this case, SP = $720.
Step 3: Calculate the Profit by subtracting the Cost Price from the Selling Price. Profit = SP - CP = 720 - 600.
Step 4: Calculate the Profit. Profit = 720 - 600 = $120.
Step 5: Calculate the Profit Percentage using the formula: (Profit / Cost Price) * 100.
Step 6: Substitute the values into the formula: (120 / 600) * 100.
Step 7: Calculate the Profit Percentage: (120 / 600) = 0.2, then 0.2 * 100 = 20%.
Step 8: The Profit Percentage is 20%.

Profit Calculation – Understanding how to calculate profit by subtracting the cost price from the selling price.
Profit Percentage – Calculating profit percentage using the formula (Profit / Cost Price) * 100.