Tuesday, November 10, 2015

Marked and Discounted Price,Concept of Error in Measurement, Direct and Indirect Cost, Semi Variable Cost, Margin, Break Even Point

In this video I have explained the concept of marked price and discounted price and the formula of both of these. Then I have explained the case of successive discounts. The case of using false weight or scale for selling and purchasing articles have also been discussed by me in this video.
The formula of that comes out to be

(100+p)/(100+x) = True Measurement/False Measurement

I have solved some questions in this video by the normal method and also solved them through this formula and showed how both the methods are same. You have to view this video again and again in order to understand the concept properly as it is slightly hard to understand.

After that I have explained the different types of costs incurred(Variable Cost,Fixed Cost,Semi Variable Cost).Then I have talked about what margin means. Then I have explained the concept of break even point.

Variable Cost or Direct Costs are those costs which depend on the number of units manufactured.

Indirect Costs or fixed costs or overhead costs are those costs which are not directly dependent on the number of units manufactured. They are basically the cost of setting up infrastructure and paying the salary of the staff, electricity and water bills, furniture bills etc.

The difference between the selling price of an item and Variable/Direct Cost per unit is called margin or per unit contribution as it is used to recover the Indirect Costs and the number of units up to which the total indirect costs have been recovered becomes the Break Even Point.

Questions discussed by me in this video are - 

Question 1. How much percent above the cost price should a shopkeeper mark his goods so as to earn a profit of 26 % after allowing a discount of 10 % on the market price.

Question 2. A shopkeeper offers 10 % discount on all plastic toys. He offers a further discount of 10 % on the reduced price to those buyers who make payment in cash. How much does a buyer has to pay in cash for purchasing a toy listed at Rs. 200 ?

Question 3. The spring balance of a trader shows 1 kilogram for 900 grams. Find the profit or loss percentage if the trader marks up the price 10 % above the cost price ??

Question 4.A shopkeeper goes to the wholesale market to buy his merchandise. The wholesaler has a weighing balance that reads 1.1 kilograms for a kilogram. The shopkeeper sell the entire purchase to a customer after marking up his cost price by 10 %. What is his net profit or loss percentage ?

Question 5.A dishonest shopkeeper professes to sell goods at his cost price but uses a false weight of 950 grams, for each kilogram. Find his profit percentage ????

Question 6.A cloth merchant says that due to slump in the market, he sells the cloth at 10 % loss, but he uses a false meter scale and actually gains 15 %. Find the actual length of the scale.

Question 7.A merchant while purchasing cloth from the seller deceives him thereby making a profit of 10 % and while selling the same cloth to the customer he cheats the customer by 20 %. How much does the merchant gains in the whole process ?


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