A merchant bought 40 kg of rice for ₹1,200. He sold the entire quantity for…
2026
A merchant bought 40 kg of rice for ₹1,200. He sold the entire quantity for ₹1,440. What is his percentage profit?
Answer: A. 20% — ConceptProfit is the excess of selling price over cost price. Profit percentage compares this profit with the cost price: Profit percentage = (Profit ÷ Cost…
- A.
20%
- B.
10%
- C.
15%
- D.
18%
Attempted by 131 students.
Show answer & explanation
Correct answer: A
Concept
Profit is the excess of selling price over cost price. Profit percentage compares this profit with the cost price: Profit percentage = (Profit ÷ Cost Price) × 100.
Application
Let the cost price be CP = ₹1,200 and the selling price be SP = ₹1,440.
Profit = SP − CP = ₹1,440 − ₹1,200 = ₹240.
Profit percentage = (₹240 ÷ ₹1,200) × 100 = 20%.
Cross-check
A 20% increase on ₹1,200 is ₹240, and ₹1,200 + ₹240 = ₹1,440, which matches the selling price. Therefore, the percentage profit is 20%.