Question

At Diwali, in a certain school, the students undertook a Design a Diya project. They bought 1000 diyas for Rs 1000 and some paint for Rs 200. To bring the diyas to the school, they spent Rs 100 on transport. They sold the painted lamps at Rs 2 each. Did they make a profit or incur a loss?

Total cost price and profit or loss

i. Is Anju right? 

ii. What about the money spent on paints and transport?

iii. How much money was actually spent before the diyas could be sold? 

iv. How much actual profit was made in this project of colouring the diyas and selling them?

Answer 1

i. No, Anju is wrong. 

Cost price of diyas also includes the painting and transportation cost. 

∴ Total cost price of diyas = Cost of diyas + Cost of paint + Transportation cost 

= 1000 + 200+ 100 

= Rs 1300

ii. The cost of paint was Rs 200 and that for transportation was Rs 100. These costs are also to be added to the cost price of diyas. 

iii. Rs 1300 was actually spent before the diyas could be sold.

iv. Total Cost Price of 1000 Diyas = Rs 1300 

Selling Price of 1 Diya = Rs 2 

∴ Selling Price of 1000 Diyas = 2 x 1000 = Rs 2000 

∴ Profit = Selling Price – Total Cost Price 

= 2000 – 1300 = Rs 700 

∴ The profit made by coloring the diyas and selling them was Rs 700.