Neelu buys lemons at the rate of 2 lemons in one rupee and sells them at the…
2023
Neelu buys lemons at the rate of 2 lemons in one rupee and sells them at the rate of 5 lemons in three rupees. Her profit is
Answer: C. 20% — ConceptProfit per unit is the difference between the selling price per unit and the cost price per unit. Profit percentage is calculated as (profit per unit ÷…
- A.
15%
- B.
18%
- C.
20%
- D.
More than one of the above
- E.
None of the above
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Show answer & explanation
Correct answer: C
Concept
Profit per unit is the difference between the selling price per unit and the cost price per unit.
Profit percentage is calculated as (profit per unit ÷ cost price per unit) × 100.
Application
The cost price per lemon is ₹1 ÷ 2 = ₹0.50.
The selling price per lemon is ₹3 ÷ 5 = ₹0.60.
Therefore, the profit per lemon is ₹0.60 − ₹0.50 = ₹0.10.
The profit percentage is (₹0.10 ÷ ₹0.50) × 100 = 20%.
Cross-check
For 10 lemons, the total cost is ₹5 and the total selling price is ₹6. The profit is ₹1 on a cost of ₹5, and (₹1 ÷ ₹5) × 100 = 20%.
Thus, the profit is 20%.