Arun Bought A Toy For ₹450 And Spent 150 For Wrapping The Toy With Transparent Cover. At What Price Must He Sell To Gain 20% From It?

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Understanding the Problem

Arun has purchased a toy for ₹450 and spent an additional ₹150 on wrapping the toy with a transparent cover. To determine the selling price at which he can gain a 20% profit, we need to calculate the total cost price and then find the selling price that yields the desired profit margin.

Calculating the Total Cost Price

The total cost price (TCP) is the sum of the cost of the toy and the cost of wrapping it. In this case, the cost of the toy is ₹450, and the cost of wrapping it is ₹150.

TCP = Cost of toy + Cost of wrapping
TCP = ₹450 + ₹150
TCP = ₹600

Calculating the Selling Price for a 20% Profit

To calculate the selling price (SP) that yields a 20% profit, we need to find 20% of the total cost price and add it to the total cost price.

Profit = 20% of TCP
Profit = 0.20 × ₹600
Profit = ₹120

SP = TCP + Profit
SP = ₹600 + ₹120
SP = ₹720

Conclusion

Arun must sell the toy for ₹720 to gain a 20% profit from the total cost price of ₹600.

Key Takeaways

  • The total cost price is the sum of the cost of the toy and the cost of wrapping it.
  • To calculate the selling price for a desired profit margin, find the profit as a percentage of the total cost price and add it to the total cost price.
  • In this case, Arun must sell the toy for ₹720 to gain a 20% profit from the total cost price of ₹600.

Real-World Applications

Calculating the selling price to gain a desired profit margin is a crucial aspect of business and finance. It helps entrepreneurs and business owners determine the optimal price for their products or services to ensure they meet their financial goals. This calculation is essential in various industries, including retail, manufacturing, and services.

Example Use Cases

  1. Retail: A retail store purchases a product for ₹500 and spends ₹100 on packaging and marketing. To gain a 25% profit, the store owner must calculate the selling price by finding 25% of the total cost price and adding it to the total cost price.
  2. Manufacturing: A manufacturing company produces a product for ₹800 and spends ₹200 on labor and materials. To gain a 15% profit, the company must calculate the selling price by finding 15% of the total cost price and adding it to the total cost price.
  3. Services: A service provider offers a service for ₹1,000 and spends ₹200 on equipment and training. To gain a 10% profit, the service provider must calculate the selling price by finding 10% of the total cost price and adding it to the total cost price.

Conclusion

Q: What is the total cost price (TCP) of the toy, including the cost of wrapping?

A: The total cost price (TCP) of the toy, including the cost of wrapping, is ₹600. This is calculated by adding the cost of the toy (₹450) to the cost of wrapping (₹150).

Q: How do I calculate the selling price (SP) to gain a desired profit margin?

A: To calculate the selling price (SP) to gain a desired profit margin, follow these steps:

  1. Calculate the profit as a percentage of the total cost price (TCP).
  2. Find the profit amount by multiplying the percentage by the TCP.
  3. Add the profit amount to the TCP to get the selling price (SP).

Q: What is the selling price (SP) of the toy if Arun wants to gain a 20% profit?

A: The selling price (SP) of the toy if Arun wants to gain a 20% profit is ₹720. This is calculated by finding 20% of the total cost price (₹600) and adding it to the total cost price.

Q: How do I calculate the profit percentage?

A: To calculate the profit percentage, follow these steps:

  1. Determine the desired profit margin (e.g., 20%).
  2. Convert the percentage to a decimal by dividing by 100 (e.g., 20% = 0.20).
  3. Multiply the decimal by the total cost price (TCP) to get the profit amount.

Q: What is the formula for calculating the selling price (SP) to gain a desired profit margin?

A: The formula for calculating the selling price (SP) to gain a desired profit margin is:

SP = TCP + (Profit Percentage × TCP)

Q: Can I use this formula to calculate the selling price (SP) for any product or service?

A: Yes, you can use this formula to calculate the selling price (SP) for any product or service. Simply replace the total cost price (TCP) with the actual cost of the product or service, and the profit percentage with the desired profit margin.

Q: What are some real-world applications of calculating the selling price (SP) to gain a desired profit margin?

A: Some real-world applications of calculating the selling price (SP) to gain a desired profit margin include:

  • Retail: Calculating the selling price (SP) to gain a desired profit margin helps retailers determine the optimal price for their products to ensure they meet their financial goals.
  • Manufacturing: Calculating the selling price (SP) to gain a desired profit margin helps manufacturers determine the optimal price for their products to ensure they meet their financial goals.
  • Services: Calculating the selling price (SP) to gain a desired profit margin helps service providers determine the optimal price for their services to ensure they meet their financial goals.

Conclusion

Calculating the selling price (SP) to gain a desired profit margin is a critical aspect of business and finance. By understanding the total cost price (TCP) and the desired profit margin, entrepreneurs and business owners can determine the optimal price for their products or services to ensure they meet their financial goals.