Raheem purchased a used car for Rs. 42000, spent Rs. 13000 on repairs, and retailed it for Rs. 64900. Find his percentage profit?
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Answer: C. 18%
Explanation
The total cost price is found by adding the initial purchase price of forty two thousand to thirteen thousand repairs. Total investment in the used car equals fifty five thousand rupees before retail sale. Subtracting cost from the selling price of sixty four nine hundred gives nine thousand nine hundred profit, or eighteen percent. Asset refurbishment costs must be added to the purchase price to determine true baseline capital investment. Profit percentage is calculated by dividing the net financial gain by the total comprehensive cost price. Automobile resale valuations depend on balancing initial purchase expenses against subsequent repair investments.
Used car dealerships calculate profit margins by factoring repair and reconditioning costs into vehicle valuations. Flipping assets for resale requires meticulous tracking of all upgrade and maintenance expenditures. Business accounting mandates that capital improvements increase the cost basis of tangible assets. Option A underestimates the percentage profit by using an inflated cost baseline calculation. Option B results from dividing the profit by the purchase price without including repair costs. Option D overestimates the percentage gain due to an error in the net profit division step.
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- Mathematics
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- Mathematics
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