Profit and Loss – Finding profit from total monthly sales with a target margin: A salesman expects a gain of 13% on his cost price. If in a month his total sales (revenue) are ₹ 791000, what is his profit?
Aptitude
Profit and Loss
Difficulty: Easy
Choose an option
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A₹ 91,000
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B₹ 88,300
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C₹ 85,659
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D₹ 97,786
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E₹ 1,03,000
Answer
Correct Answer: ₹ 91,000
Explanation
Introduction / Context:When the target gain is a percentage of cost price, relate SP and CP via SP = (1 + margin) * CP, then back out profit from the given sales.
Given Data / Assumptions:
- Margin on cost = 13%
- Total SP = ₹ 791000
Concept / Approach:SP = 1.13 * CP ⇒ CP = SP / 1.13. Profit = SP - CP.
Step-by-Step Solution:CP = 791000 / 1.13 = 700000Profit = SP - CP = 791000 - 700000 = 91000
Verification / Alternative check:13% of 700000 = 91000; adding to CP gives SP 791000.
Why Other Options Are Wrong:Other values do not match 13% of the implied CP.
Common Pitfalls:Treating margin on SP instead of on CP.
Final Answer:₹ 91,000