For every ₹5 worth of revenue, a retailer earns ₹1. If the cost of the goods was ₹4800, then how much did he earn?
Answer & explanation
Correct answer: option 3
Given, Profit = Rs. 1
cost price = 5
Cost price = 5 – 1 = Rs. 4
Profit % = \(\frac{1}{4}\) × 100 = 25%
If, cost price = 4800
Profit = 4800 × 25% = 1200