Monday, October 21, 2013

profit and loss




     I purchase some eggs for $100. 20% of the eggs break in transit, out of the remaining 25%was rotten. What profit percentage should I make on the remaining to get an overall 20% profit?


Answer:
Say I purchase 100 eggs for $100
Breakage in transit = 20 eggs
Eggs remaining = 100 – 20 = 80
Rotten eggs = 0.25 x 80 = 20
So, eggs remaining for selling = 100 – (20 + 20) = 60
Cost of 60 eggs = $60
Selling price of 60 eggs = $100 x 1.2 = $120

So, overall profit % on the remaining eggs should be = 100 x (120 – 60)/60 = 100%

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