A grocer purchased 10 kg rice for ₹700. He spends some amount on transportation and then sells it for ₹1,400. If the percentage of profit made by the grocer is 30%, then what is the amount (in₹)he spends on transportation? (Round off to the nearest integer)
Correct Answer :
377
Solution :
To find the amount spent on transportation, we can break down the problem step-by-step using the relationship between cost price, selling price, and profit percentage.
Step 1: Understand the components of the Total Cost Price (CP)
The total cost price for the grocer consists of two parts:
1. The purchase price of the rice: ₹700
2. The amount spent on transportation (let this be )
Therefore, the total Cost Price () is:
Step 2: Relate Cost Price, Selling Price (SP), and Profit Percentage
We are given:
- Selling Price () = ₹1,400
- Profit Percentage = 30%
The formula relating Selling Price, Cost Price, and Profit Percentage is:
Step 3: Substitute the known values into the equation
Substituting the values we have:
Simplifying the profit factor:
Step 4: Solve for the transportation cost ()
Divide both sides by 1.3:
Now, subtract 700 from both sides to find :
Step 5: Round off to the nearest integer
Rounding 376.92 to the nearest integer gives ₹377.
Thus, the amount spent on transportation is ₹377.
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