Question

at the end of the second year A man imported a vehicle at Shs. 600,000 and sold it at Sh. 1,080,0000. Find his percentage profit if he spent sh. 60,000 for clearing the vehicle from the port and a further sh. 40,000 for shipping. (​

Answer 1

To find the percentage profit, calculate the profit and the expenses. Then, use the formula to calculate the percentage profit. The man's percentage profit is 68.57%.

Step-by-step explanation:

To find the percentage profit, we need to calculate the profit first. Profit is the difference between the selling price and the cost price.

The cost price of the vehicle is Shs. 600,000 and the selling price is Shs. 1,080,000.

So, the profit is

Shs. 1,080,000 - Shs. 600,000 = Shs. 480,000.

Next, we need to calculate the expenses. The expenses include clearing the vehicle (Shs. 60,000) and shipping (Shs. 40,000). So, the total expenses are

Shs. 60,000 + Shs. 40,000 = Shs. 100,000.

Now, we can calculate the percentage profit using the formula:

Percentage Profit = (Profit / (Cost Price + Expenses)) x 100

Plugging in the values:

Percentage Profit = (Shs. 480,000 / (Shs. 600,000 + Shs. 100,000)) x 100

Percentage Profit = (Shs. 480,000 / Shs. 700,000) x 100

Percentage Profit = 68.57%

Therefore, the man's percentage profit is 68.57%.