Calculating Selling Price With 18% Profit On A TV

by TextBrain Team 50 views

Let's break down how to calculate the selling price of a color TV when you know its cost and the profit percentage. This is a common math problem, and understanding the steps will help you in various real-life scenarios, especially when dealing with business and finance.

Understanding the Basics

Before we dive into the calculation, let's make sure we understand the key terms:

  • Cost Price (CP): This is the original price the TV was bought for. In our case, the cost price is ₹12500.
  • Profit: This is the amount of money gained after selling the TV. It's the difference between the selling price and the cost price.
  • Profit Percentage: This is the profit expressed as a percentage of the cost price. Here, the profit percentage is 18%.
  • Selling Price (SP): This is the price at which the TV is sold. This is what we need to calculate.

Formula for Selling Price with Profit

The formula to calculate the selling price when there's a profit is:

SP = CP + Profit

However, since we're given the profit percentage instead of the actual profit amount, we need to calculate the profit first. The formula for profit based on profit percentage is:

Profit = (Profit Percentage / 100) * CP

Once we have the profit, we can plug it into the first formula to find the selling price. Let's get to calculating, guys!

Step-by-Step Calculation

  1. Calculate the Profit Amount:

    We know the cost price (CP) is ₹12500 and the profit percentage is 18%. So, let's plug these values into the profit formula:

    Profit = (18 / 100) * 12500

    Profit = 0.18 * 12500

    Profit = ₹2250

    So, the profit earned on the TV is ₹2250.

  2. Calculate the Selling Price:

    Now that we know the profit, we can calculate the selling price using the formula:

    SP = CP + Profit

    We know the CP is ₹12500 and the profit is ₹2250. Plugging these values in:

    SP = 12500 + 2250

    SP = ₹14750

    Therefore, the selling price of the color TV is ₹14750. See, it wasn't so hard, was it?

Alternative Formula for Direct Calculation

There's also a direct formula that combines both steps into one, which can save you a little time. This formula is derived from the previous two:

SP = CP * (1 + (Profit Percentage / 100))

Let's use this formula to verify our answer:

SP = 12500 * (1 + (18 / 100))

SP = 12500 * (1 + 0.18)

SP = 12500 * 1.18

SP = ₹14750

As you can see, we get the same answer, ₹14750, using this direct formula. Both methods are perfectly valid, so choose the one you feel most comfortable with.

Real-World Application

Understanding how to calculate selling price with profit is incredibly useful in various scenarios:

  • Retail: Shop owners use this to determine the price they should sell an item for to achieve their desired profit margin. Think about your local electronics store – they use these calculations all the time!
  • Business: Businesses use this to price their products and services, ensuring they cover costs and make a profit. It's a fundamental aspect of financial planning.
  • Personal Finance: Even in personal finance, you might use this to calculate the selling price of something you're selling online or at a garage sale.
  • Negotiation: Knowing how profit margins work can help you negotiate better deals, whether you're buying or selling.

Common Mistakes to Avoid

When calculating selling price and profit, here are a few common mistakes to watch out for:

  • Incorrectly Calculating Profit: Make sure you divide the profit percentage by 100 before multiplying it by the cost price. Forgetting this step will lead to a significantly wrong answer.
  • Adding Profit to Selling Price: Remember, profit is added to the cost price to get the selling price, not the other way around.
  • Using the Wrong Base: Always calculate the profit percentage based on the cost price, not the selling price. This is a crucial distinction.
  • Ignoring Other Costs: In real-world scenarios, businesses often have other costs like shipping, handling, and marketing. These should be factored into the selling price calculation for accurate profit margins.

Practice Problems

To solidify your understanding, let's try a couple of practice problems:

  1. A store buys a laptop for ₹30000 and wants to sell it at a 20% profit. What should be the selling price?
  2. A bicycle costs ₹5000 and is sold at a profit of 15%. Calculate the selling price.

Try solving these on your own, using the formulas and steps we discussed. This will really help you nail down the concept!

Conclusion

Calculating the selling price with a profit percentage is a fundamental mathematical skill with practical applications in business, finance, and everyday life. By understanding the basic concepts, formulas, and potential pitfalls, you can confidently tackle these calculations. Remember, the key is to first calculate the profit amount and then add it to the cost price to find the selling price. Whether you use the step-by-step method or the direct formula, the important thing is to understand the logic behind the calculation. Keep practicing, and you'll become a pro at calculating selling prices in no time! And that's how you figure out the selling price, guys! 🚀