Question

II. Mr. Roy sold a cupboard to Mohan for RO 60 and earned a profit of RO 10. Mohan spent RO 27 to polish and repair the cupboard. He then sold it to Gopi at a profit of RO 8. After using the cupboard for a year , Gopi sold it to a furniture dealer for RO 90. Did Gopi make a profit or a loss in the deal? *

Answer 1

Gopi made a loss in the deal

Explanation:

To solve this question, we'll analyse each statement in the question one after the other.

From Roy to Mohan,

`Selling\ Price = Ro.\ 60`

The profit of
`Ro.\ 10` goes to Roy

Mohan spent
`Ro. 27` on polish and repairs.

So, the cost price of the cupboard becomes

`Cost\ Price = Ro.60 + Ro.27`

`Cost\ Price = Ro.87`

He sells at a profit of
`Ro.8`. to Gopi

So, the selling price is:

`Selling\ Price = Ro.8 + Ro.87`

`Selling\ Price = Ro.95`

At this stage, the cost price of the cupboard to Gopi is:

`Cost\ Price = Ro.95`

and

`Selling\ Price = Ro.90`

Profit is calculated as:

`Profit = Selling\ Price - Cost\ Price`

`Profit = Ro.90 - Ro.95`

`Profit =- Ro.5`

Because; the profit is negative, then it is a loss.

`Loss = Ro.5`

Gopi made a loss in the deal