A retailer hired a room in a shopping mall at Rs 45,000 rent per month and started a business of garments. He spent Rs 20,00,000 to purchase different garment items in the first phase and marked the price of each item 30% above the cost price. Then, he allowed 10% discount on each item and sold to customers. His monthly miscellaneous expenditure was Rs 15,000 and the items of worth 10% of the investment remained as stocks for two months. Find his net profit or loss. 


Solution:
Given,

Time duration = 2 months

Rent of the room in shopping mall = Rs45000/month
= Rs 45000 *2
= Rs 90000



Total cost price (C.P.) = Rs 20,00,000



Marked Price of items altogether (M.P.) = C.P. + 30% of C.P.

= 20,00,000 + $\frac{30}{100}$ * C.P.

= 20,00,000 + 6,00,000

= Rs 26,00,000



Sales = 100% -10% = 90%



Total sales in M.P. = 90% of M.P.

= $\frac{90}{100}$ * 2600000

= Rs 23,40,000



Discount (d%) = 10%



So, Total Selling Price (S.P.) = M.P. - d% of M.P.

= 2340000 - $\frac{10}{100}$ * 2340000

= 2340000 - 234000

= Rs 21,06,000



Miscellaneous expenditure = Rs 15000/month

= Rs 15000 * 2

= Rs 30000


Since, 10% of the items were in stock, required C.P. (C.P.r) = 90% of C.P.

= Rs 1800000



Because S.P. > C.P.r ; Profit (P) = S.P. - C.P.r

= Rs 2106000 - Rs 1800000

= Rs 306000



And, Net profit (Pn) = Rs 306000 - (miscellaneous expenditure) - (rent amount)

= 106000 - 30000 - 90000

= Rs 186000



Net Profit Percentage = $\frac{Pn}{C.P.r}$*100%

= $\frac{186000}{1800000}$ * 100%

= 10.33%


Therefore, the seller received a 10.33% profit from the sales within 2 months. 


This is a class 10 Question from the unit Tax and Money Exchange, included in the Taxation chapter of MP, SP, CP and Discount.

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