Theory question 101
Commercial ArithmeticPART I. A shopkeeper buys 40kg of fruits for N120.00. He sells 20kg at N5.00 (per kg, 10kg at N3.00 per kg, 5kg at N2.00 per kg and the remaining 5kg at 50k per kg. Calculate the (a) amount he realises from the sales: (b) total profits (c) percentage profit on his outlay of N120.00.
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Model answer
(a) 20 × N5 = N100; 10 × N3 = N30; 5 × N2 = N10; 5 × 50k = N2.50.
Amount realised = N100 + N30 + N10 + N2.50 = N142.50.
(b) Profit = N142.50 − N120.00 = N22.50.
(c) Percentage profit = 22.50/120 × 100% = 18.75%.
Explanation
Work out each batch's sales separately, then add; profit is selling price minus cost price.