Profit and Loss on Tomato Sales: A Comprehensive Analysis

Understanding profit and loss percentages in business transactions is crucial for any vendor to determine the financial health and profitability of their operations. In this article, we will analyze a scenario in which a vendor buys tomatoes at a specific cost and sells them at a given rate to determine their gain or loss.

Scenario Overview

The vendor in question purchases tomatoes at a rate of Rs. 25 per dozen. The tomatoes are then sold at the rate of 5 for Rs. 12. Let's break down the steps to calculate the vendor's gain or loss percentage.

Step-by-Step Analysis

Step 1: Calculate the Cost Price (CP) per Tomato

The vendor buys tomatoes at Rs. 25 per dozen. Since a dozen contains 12 tomatoes, the cost price per tomato is calculated as follows:

CP per tomato 25 / 12 ≈ Rs. 2.08

Step 2: Calculate the Selling Price (SP) per Tomato

The vendor sells the tomatoes at the rate of 5 for Rs. 12. Hence, the selling price per tomato is:

SP per tomato 12 / 5 Rs. 2.4

Step 3: Calculate the Gain per Tomato

The gain on each tomato is the difference between the selling price and the cost price:

Gain SP - CP 2.4 - 2.08 Rs. 0.32

Step 4: Calculate the Gain Percent

The gain percent is calculated using the formula:

Gain percent (Gain / CP) * 100

Substituting the values:

Gain percent (0.32 / 2.08) * 100 ≈ 15.38%

Conclusion

The vendor's gain percent is approximately 15.38%. This indicates that the vendor is making a profit on each tomato sold, specifically 15.38%.

Different Perspectives and Calculations

Alternatively, let's examine another calculation method:

Calculation of Profit:

Sale rate of 12 tomatoes 12 / 5 2.4 (Rs.) per tomato 28.8

Purchase rate of 12 tomatoes Rs. 25

Profit 28.8 - 25 Rs. 3.8

Profit percentage (3.8 / 25) * 100 15.2%

This also matches the initial calculation, confirming that the vendor's gain is approximately 15.2%.

Calculation of Loss:

Purchase rate of 5 tomato (25 / 12) * 5 Rs. 10 5/12

Selling rate of 5 tomato Rs. 12 / 5 Rs. 2 2/5

Loss (125/12) - (12/5) Rs. 481/60 8 1/60

(Loss) % (481 * 12 / (60 * 125) * 100) 76.96% (This is incorrect, as it should reflect a profit, not a loss)

The correct interpretation is that the vendor is making a profit, not a loss, as initially calculated.