Calculating Profit on the Sale of a TV: An SEO-Optimized Guide

When you purchase a new television, it's not just the initial cost you have to consider. You also need to factor in additional expenses such as repairs and transport. Selling the television with a profit involves understanding the total cost and applying the desired profit margin. This article will guide you through calculating the selling price of a television that was purchased for Rs. 40,000, with the addition of a Rs. 5,000 repair cost and a Rs. 1,000 transport charge, with a goal of earning a 25% profit.

Understanding the Cost Breakdown

First, let's break down the costs:

The total cost is the sum of the purchase price, repair, and transport:

Total Cost Rs. 40,000 Rs. 5,000 Rs. 1,000 Rs. 46,000

Selling Price Calculation

Now, we need to calculate the selling price to achieve a 25% profit. The formula to calculate the selling price is:

Selling Price Total Cost (25% of Total Cost)

First, let's calculate the profit:

Profit 25% of Rs. 46,000 0.25 x 46,000 Rs. 11,500

Now, the selling price can be found by adding the profit to the total cost:

Selling Price Rs. 46,000 Rs. 11,500 Rs. 57,500

Alternatively, you can directly calculate the selling price using the profit margin:

Selling Price Total Cost x (1 Profit Margin) Rs. 46,000 x 1.25 Rs. 57,500

Verification and Additional Scenarios

To verify this, let's consider a few scenarios:

Example 1

Total purchase price Rs. 80,000

Total repair costs Rs. 5,000

Transport charges Rs. 1,000

Total cost Rs. 80,000 Rs. 5,000 Rs. 1,000 Rs. 86,000

Selling price with 25% profit:

Selling Price 125% of Rs. 86,000 Rs. 86,000 x 1.25 Rs. 107,500

Example 2

Total purchase price Rs. 95,000

Desired profit 25% of Rs. 95,000 Rs. 23,750

Selling price Total cost Profit Rs. 95,000 Rs. 23,750 Rs. 118,750

Using another method:

Selling price 125% of Rs. 95,000 Rs. 95,000 x 1.25 Rs. 118,750

Conclusion

When purchasing a TV and adding costs for repair and transport, the selling price to achieve a desired profit can be calculated using the methods described above. This ensures that you cover your expenses and make a profit, providing a clear understanding of the financial aspects of selling your electronics.

If you have any questions or need further assistance with similar calculations, feel free to reach out. Happy selling!