A Shopkeeper Buys 80 Articles for Rs. 2400 and Sells Them for a Profit of 16%. Find the Selling Price of One Article.

A Shopkeeper buys 80 articles for Rs. 2400 and sells them for a profit of 16%. Find the Selling price of one article.

The selling price of one article is Rs. 34.80.

To find the selling price of one article, we first need to calculate the total cost price (CP) and then apply the profit percentage.

Given:

Cost price of 80 articles = Rs. 2400

Profit percentage = 16%

1. Calculate the cost price of one article:
   Cost price of 80 articles = Rs. 2400
   Cost price of 1 article = 2400 / 80
   = Rs. 30

2. Calculate the profit earned on one article:
   Profit percentage = 16%
   Profit on one article = (16/100) * 30
   = Rs. 4.80

3. Calculate the selling price of one article:
   Selling price = Cost price + Profit
   = Rs. 30 + Rs. 4.80
   = Rs. 34.80

So, the selling price of one article is Rs. 34.80.

Cost Price and Selling Price

Cost price (CP) refers to the price at which a product or service is purchased or manufactured. It includes all expenses incurred in the production or acquisition of the product, such as raw materials, labor, and overhead costs.

Selling price (SP) refers to the price at which a product or service is sold to customers. It is the amount for which the product or service is offered in the market, including any profit margin added by the seller.

The relationship between cost price and selling price is crucial for determining profitability. The profit earned on a sale can be calculated by subtracting the cost price from the selling price. The formula is:

Profit = Selling Price - Cost Price

Alternatively, if you want to express profit as a percentage of the cost price, you can use the formula:

Profit Percentage = (Profit / Cost Price) * 100%

Similarly, if you want to express profit as a percentage of the selling price, the formula is:

Profit Percentage = (Profit / Selling Price) * 100%

Understanding the relationship between cost price and selling price is fundamental for businesses to make pricing decisions, analyze profitability, and plan their financial strategies.