Calculate Selling Price With 15% Profit On ₹1500 Article
Introduction
Hey guys! Today, we're diving into a classic math problem: calculating the selling price of an item when it's sold at a profit. This is super useful in everyday life, whether you're running a business or just trying to figure out if a deal is actually a good one. We'll break it down step by step, so you can easily understand how to find the selling price when you know the cost price and the profit percentage. Let's get started!
Understanding the Basics
Before we jump into the problem, let's make sure we're all on the same page with some basic terms. When you buy something, the price you pay is called the cost price (CP). This is the amount the item originally cost you. When you sell that same item for a higher price, the extra money you make is called the profit. The price at which you sell the item is the selling price (SP). Understanding these terms is crucial for solving any problem related to profit and loss. Think of it like this: you buy a cool gadget for a certain amount (CP), and then you sell it to your friend for a bit more (SP), making a profit in the process. We're going to figure out how to calculate that SP given a profit percentage. So, keep these terms in mind as we move forward. We're going to use them a lot!
Cost Price (CP)
Cost Price (CP) is the initial amount spent to acquire an item. In simple terms, it's the price you pay when you buy something. Whether you're a retailer purchasing goods to sell in your store, or an individual buying an item for personal use, the amount you spend is the cost price. Understanding the cost price is the first step in determining profitability. It acts as the baseline for calculating profits and losses. For businesses, the cost price may include not only the purchase price but also additional expenses such as shipping, handling, and storage. These additional costs can significantly impact the overall profitability of a product. In our problem today, the article's cost price is a crucial piece of information needed to calculate the selling price after a profit is added. Remember, knowing your cost price accurately is vital for making sound financial decisions. It allows you to set appropriate selling prices and ensure that your business remains profitable. So, always keep track of your costs! It's the foundation of good business sense. Without knowing the cost price, you can't accurately determine your profit or loss, which is why it's such a fundamental concept in commerce and everyday transactions.
Profit
Profit is the financial gain you make when you sell something for more than it cost you. Think of it as the reward for your investment or effort. It's the difference between the selling price and the cost price, and it's what every business aims for. Profit can be expressed in two ways: as a fixed amount or as a percentage of the cost price. In our problem, we're dealing with a profit percentage, which means the profit is a certain percentage of the original cost. This is a common way to express profit because it gives a clear indication of the return on investment. For example, a 15% profit means that for every ₹100 you spent, you made ₹15 in profit. This percentage is crucial for comparing the profitability of different items or investments. Understanding profit is essential for making informed decisions, whether you're running a business or just selling something online. It helps you determine if your selling price is appropriate and if your venture is financially viable. So, always keep an eye on your profit margins! They are the key to sustainable success. A healthy profit margin ensures that you can cover your costs and continue to grow your business. It's the ultimate goal in any commercial activity. Remember, profit isn't just about making money; it's about creating value and being rewarded for it.
Selling Price (SP)
Selling Price (SP) is the amount at which an item is sold to a customer. It's the final price the buyer pays and is a critical factor in determining profitability. The selling price needs to be high enough to cover the cost price and any additional expenses, while also providing a profit margin. Setting the right selling price is a balancing act; it needs to be competitive enough to attract customers but also high enough to ensure the business makes money. Several factors influence the selling price, including the cost price, market demand, competition, and the desired profit margin. In our problem, we need to calculate the selling price based on a given cost price and a profit percentage. This calculation involves adding the profit amount to the cost price. The selling price is the ultimate outcome of the transaction, and it directly impacts the revenue generated. For businesses, the selling price is a key lever for managing profitability and achieving financial goals. It's not just a number; it's a strategic decision that can make or break a business. Therefore, understanding how to calculate and set the selling price is crucial for success in any commercial endeavor. A well-calculated selling price ensures that you are compensated fairly for your goods or services while also satisfying your customers.
The Problem: An Article Sold at a Profit
Okay, let's dive into the problem we're tackling today. We have an article, which could be anything – a book, a gadget, a piece of furniture – it doesn't really matter. The important thing is that it was bought for ₹1500. This is our cost price (CP). Now, someone decided to sell this article at a profit of 15%. This is our profit percentage. The question we need to answer is: What is the selling price (SP) of this article? This is a very common type of problem, and it's super important to know how to solve it. Whether you're running a business or just trying to figure out how much to sell something for, understanding this calculation is key. So, let's break it down step by step and make sure we all get it. The first thing we need to do is figure out what 15% of ₹1500 is. This will tell us how much profit was made on the sale. Once we know the profit amount, we can add it to the cost price to find the selling price. It's like building blocks – each step leads us closer to the final answer. So, let's get calculating!
Given Information
In any math problem, the first step is always to identify the given information. What do we already know? In this case, we have two crucial pieces of data: The cost price of the article, which is ₹1500, and the profit percentage, which is 15%. These are our starting points. Without this information, we wouldn't be able to solve the problem. Think of it like a treasure hunt – the given information is the first clue that leads you to the treasure (the selling price). It's essential to clearly identify and understand what you've been given before you start trying to solve anything. Misunderstanding the given information can lead to incorrect calculations and a wrong answer. So, always take a moment to carefully read and note down the key facts. In this problem, we know the initial price (CP) and the profit margin (15%). This is enough to calculate the final selling price (SP), which is what we're aiming for. The given information acts as the foundation for our calculations, providing the necessary inputs to find the solution. So, let's make sure we're clear on what we have: ₹1500 cost price and 15% profit. With these in hand, we're ready to move on to the next step.
Goal
Now that we know what information we have, let's clearly define our goal. What are we trying to find out? In this problem, our goal is to calculate the selling price (SP) of the article. We want to know how much the article was sold for after a 15% profit was added to the cost price. Having a clear goal in mind is crucial for problem-solving. It helps us focus our efforts and ensures we're working towards the right answer. Without a goal, we might get lost in the calculations and not know what we're ultimately trying to achieve. Think of it like setting a destination before starting a journey – you need to know where you're going to plan the route. In this case, our destination is the selling price. We know the starting point (cost price) and the profit margin, and now we need to figure out the final selling price. So, let's keep our goal in mind as we work through the calculations. We're aiming to find the SP, and every step we take should bring us closer to that answer. A clear goal makes the problem-solving process much more efficient and effective. It keeps us on track and ensures we get the right solution.
Step-by-Step Solution
Alright, guys, let's get down to business and solve this problem step by step. We know the cost price is ₹1500, and we want to make a 15% profit. So, the first thing we need to do is calculate how much that 15% profit actually is in rupees. This will tell us the extra amount of money we're making on the sale. Once we have that number, we can simply add it to the original cost price to find the selling price. It's like adding two ingredients together to make a cake – we need the profit amount and the cost price to get the selling price. We'll break down the calculation into easy-to-follow steps, so don't worry if it seems a bit confusing at first. We'll start by figuring out how to calculate the profit amount. Remember, percentages can sometimes seem tricky, but they're actually quite straightforward once you understand the basic concept. So, let's roll up our sleeves and get calculating! We're going to turn that 15% profit into a real number we can work with.
Step 1: Calculate the Profit Amount
The first step in finding the selling price is to calculate the profit amount. We know the profit is 15% of the cost price, which is ₹1500. To find 15% of ₹1500, we need to convert the percentage into a decimal and then multiply it by the cost price. Remember, a percentage is just a fraction out of 100, so 15% is the same as 15/100. To convert this fraction to a decimal, we divide 15 by 100, which gives us 0.15. Now we have our decimal equivalent, which we can use in our calculation. This is a crucial step because it allows us to work with the percentage in a mathematical equation. Without this conversion, we wouldn't be able to find the profit amount. So, we've transformed the percentage into a usable form. The next step is to multiply this decimal (0.15) by the cost price (₹1500). This will give us the exact amount of profit we're making on the sale. It's like finding a piece of the pie – we're figuring out how much of the ₹1500 pie is represented by the 15% profit. So, let's get to the multiplication and find out our profit amount!
To calculate the profit amount, we multiply the decimal equivalent of the profit percentage (0.15) by the cost price (₹1500):
Profit = 0.15 * ₹1500
Profit = ₹225
So, the profit amount is ₹225. This means that when the article is sold, a profit of ₹225 is made on top of the original cost. This is a significant piece of information because it tells us exactly how much extra money is earned from the sale. Knowing the profit amount is essential for determining the final selling price. It's the key ingredient that we'll add to the cost price to find out the selling price. Think of it like this: ₹225 is the reward for selling the article, and it's added to the initial investment (₹1500) to determine the total return. This calculation is a fundamental step in understanding the profitability of the sale. It gives us a clear picture of how much money is being made. So, now that we know the profit amount is ₹225, we're one step closer to finding the selling price. We've done the hard part of converting the percentage and multiplying it by the cost price. The next step is simple addition!
Step 2: Calculate the Selling Price
Now that we know the profit amount, which is ₹225, we can easily calculate the selling price (SP). The selling price is simply the cost price (₹1500) plus the profit (₹225). This makes sense, right? You want to sell the item for at least what you bought it for, plus the extra profit you want to make. It's like adding the ingredients together to get the final dish. We have the cost price as the base, and the profit as the flavor enhancer. When we add them together, we get the selling price – the final amount the item is sold for. This step is the culmination of all our previous work. We've identified the given information, understood our goal, and calculated the profit amount. Now, we're putting it all together to find the answer we're looking for. It's like the final piece of a puzzle falling into place. The calculation is straightforward: we just add the two numbers together. But the result is significant because it tells us the price at which the article was actually sold. So, let's do the addition and find out the selling price!
To calculate the selling price, we add the profit amount (₹225) to the cost price (₹1500):
Selling Price = Cost Price + Profit
Selling Price = ₹1500 + ₹225
Selling Price = ₹1725
Therefore, the selling price of the article is ₹1725. This means that the article was sold for ₹1725, which includes the original cost of ₹1500 and a profit of ₹225. This is our final answer! We've successfully calculated the selling price by following a clear, step-by-step process. It's like reaching the end of a journey – we've started with the given information, followed the route, and arrived at our destination: the selling price. This calculation demonstrates a fundamental principle of business: to make a profit, you need to sell an item for more than it cost you. In this case, the article was sold for ₹225 more than it was bought for, resulting in a 15% profit. So, we've not only found the selling price but also understood the underlying concept of profit and selling price calculation. This is a valuable skill that can be applied in many real-life situations, from running a business to making personal financial decisions. We've cracked the code and found the selling price!
Final Answer
So, after all our calculations, we've arrived at the final answer! The selling price of the article is ₹1725. This means that the article, which was bought for ₹1500, was sold for ₹1725, resulting in a profit of ₹225. This is a clear and concise answer that directly addresses the question posed in the problem. It's like the punchline of a joke – it's the satisfying conclusion to all the steps we've taken. We've not only found the numerical answer but also understood the process of calculating the selling price when a profit is involved. This understanding is just as important as the answer itself. We can now confidently apply this knowledge to similar problems in the future. The final answer of ₹1725 represents the value at which the article changed hands, taking into account the desired profit margin. It's a practical application of mathematical concepts to a real-world scenario. So, let's celebrate our success in finding the selling price! We've solved the problem, understood the process, and gained a valuable skill in the process.
Conclusion
Great job, guys! We've successfully calculated the selling price of an article sold at a profit. We started with the cost price of ₹1500 and a profit percentage of 15%, and we worked our way through the steps to find the selling price of ₹1725. We broke down the problem into manageable parts, calculated the profit amount, and then added it to the cost price to find the selling price. This process is a fundamental concept in business and finance, and understanding it is super useful in many situations. Whether you're running a lemonade stand or managing a large corporation, knowing how to calculate selling prices and profits is essential. We've learned not just the formula but also the logic behind it. We understand why we add the profit to the cost price to get the selling price. This understanding will help us solve similar problems in the future with confidence. So, let's take a moment to appreciate what we've learned today. We've tackled a math problem, gained a valuable skill, and boosted our confidence in problem-solving. Keep practicing these types of calculations, and you'll become a pro in no time!