A vendor purchases 50 dozen bananas for Rs.700 and sells them at a rate of Rs.25 per dozen. What is the net profit earned by the vendor?

1. A

   Rs.450

2. B

   Rs.550

3. C

   Rs.600

4. D

   Rs.1250

Appeared in: NORCET-11 Prelims

Explanation

• Vendor buys 50 dozen bananas for Rs.700 (cost price).
• Sells all 50 dozen at Rs.25 per dozen, so total selling price = 50 x 25 = Rs.1250.
• Net profit = Selling price - Cost price = Rs.1250 - Rs.700 = Rs.550.
• Uses the basic profit formula: Profit = Total Selling Price - Total Cost Price.
• Standard approach for bulk sales and economic transactions.

Why Other Options Were Wrong

• Option A: Rs.450 is incorrect because it results from a miscalculation of either the selling price or profit formula.
• Option C: Rs.600 is incorrect as it overestimates the profit, possibly by using an incorrect selling price or calculation error.
• Option D: Rs.1250 is incorrect because it represents the total selling price, not the net profit.

Related Visual

Clinical Relevance

• Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculation of net profit in a bulk purchase and sale scenario as background academic context rather than a clinical decision trigger.
• Understanding profit calculation is essential for nurses involved in hospital inventory, pharmacy, or dietary services.
• Accurate calculation prevents financial losses in healthcare settings.
• What if? If the vendor sold at Rs.20 per dozen, the profit would be Rs.300 (50 x 20 = Rs.1000; Rs.1000 - Rs.700 = Rs.300).

How to Approach the Question

• Identify the total quantity purchased and the cost price.
• Calculate the total selling price by multiplying the number of dozens by the selling rate per dozen.
• Subtract the total cost price from the total selling price to get net profit.
• Review all options and match your calculated profit to the correct choice.
• Double-check calculations to avoid common errors in multiplication or subtraction.

Concept Tested & Keywords

• Concept Tested: Calculation of net profit in a bulk purchase and sale scenario
• Stem keywords: vendor, 50 dozen bananas, Rs.700, Rs.25 per dozen, net profit
• Lead-in keywords: net profit

Question ID

QSeWW6T8dQYOAoCboYpmlu

Copy ID

Reference Book

E6 Nutrition Kumud Khanna 2e p. 26-28