What Is the Profit Percentage After Adjusting Travel Costs and Sale Gains?

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In summary, A went to Navik to buy an article at a 15% discount compared to Bombay. After spending \$150 on travel and selling the article in Bombay, he only made a \$150 profit, resulting in 0% profit. Various equations were attempted to calculate the profit percent, but none were successful.
  • #1
Bees
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Hello,

Can anyone help me with this problem please?

A goes to Navik to buy an article costing 15% less than in Bombay. A spends \$150 on traveling and gains \$150 after its sale in Bombay. His profit percent is?

I did a few attempts on this problem, and I will walk you through them, but could you please share your approach to this problem? Thank you very much!

got the breakdown of pieces of information necessary to write the
>equations, but I don't seem to be able to find the equation that
>correctly correlates the expressions together. The expressions somehow
>relate to each other, but I don't know how. I wrote several formulas-
>one for profit percent, another for profit, and yet another for selling
>price-but I can't solve them. Then, I tried to relate what I know -
>profit of \$150 to the cost of \$(0.85+150) - but then did not know how
>to set up the second half of the equation on the other side of the
>equal sign. I tried that side to equal profit/0.85\$x but I am having
>one equation with 2 unknowns, where one unknown is profit and the other
>is x. And I don't know what the second equation could be!
>
>[Thoughts]
>A---------->Nasik------------>Bombay
> Cost Price
> \$x-0.15(\$x)
> 0.85(\$x)
>
>A--------->Bombay
> Cost price
> \$x
>
>Nasik-------------------->Bombay
>Cost Price Cost Price Profit Amount %Profit
>0.85(\$x) (0.85(\$x)+\$150) \$150 TBD
>
>Profit=Selling Price-Cost Price
>\$150=S.P.-0.85(\$x)+\$150
>0.85(\$x)=S.P.
>So Selling Price is 0.85(\$x). Now, I am thinking if it makes sense. It
>might because he spent \$150 on travels and his profit amount was \$150
>as well, so he neutralized his profit. The profit also depends of
>course on the cost, not only on related travel expenses, which
>represent additional cost here. So, I will know for sure what percent
>profit was when I calculate how profit relates to cost. I am having a
>hard time calculating that.
>
>Another attempt is:
>Profit % = [profit/cost price]*100%
>Profit % = [\$150/$(0.85x+150)]*100%
>Profit = [150/(0.85x+150)]*100
>So, the two unknowns here are the profit and x.
>
>I was originally thinking of using the Profit equation directly above
>with this equation directly below to give me a set of two equations
>with two unknowns. But after thinking some more, I realized that I
>cannot equal the two sides of the second equation because the % profits
>do NOT equal. This is the equation that I am talking about:
>[150/(0.85x+150)]=[profit/0.85x]
>This equation isn't right because each side of the equation expresses %
>profit and % profits in both situations do NOT equal.
>
>Another attempt:
>Selling Price=[(100% + Gain%)/100%]*Cost Price
>0.85\$X = [(100% + ?)/100%]*0.85($x)+\$150
>
>As you can see nothing is coming out. I have no idea why.
 
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  • #2
A has paid \$150 to travel to Bombay and back and made a \$150 profit? He has made no profit at all, just got back his travel cost! His "profit percent" is 0.
 
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FAQ: What Is the Profit Percentage After Adjusting Travel Costs and Sale Gains?

What is percent profit?

Percent profit is a measure of the profitability of a business or investment. It is calculated by dividing the amount of profit by the initial cost or investment and multiplying by 100.

How do you calculate percent profit?

To calculate percent profit, you need to know the initial cost or investment and the amount of profit made. Then, divide the profit by the initial cost and multiply by 100. The resulting number is the percent profit.

Why is calculating percent profit important?

Calculating percent profit is important because it allows businesses and investors to understand how much return they are getting on their investment. It also helps them make informed decisions about pricing and budgeting.

What is a good percent profit?

A good percent profit varies depending on the industry and market conditions. Generally, a higher percent profit is considered better as it indicates a more profitable business or investment. However, it is important to compare percent profit to similar companies or investments to get a better understanding of its performance.

Can percent profit be negative?

Yes, percent profit can be negative if the amount of profit is less than the initial cost or investment. This indicates a loss or negative return on the investment. It is important to address and analyze negative percent profit to improve performance and profitability.

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