Selling Tomatoes at Different Profit Margins

Oct 13, 2025 by magicalceylontours.com 52 views

Introduction

In the world of business, profit margins can make all the difference between success and failure. A vegetable shop owner, for instance, needs to maximize his profits by selling his products at the right prices. In this scenario, we will explore how a shop owner can earn a total profit by selling tomatoes at different profit margins.

The Shop Owner's Tomato Purchase

A vegetable shop owner bought 10 kg of tomatoes from a wholesaler. The cost price of the tomatoes is not specified, but we will assume it to be $1 per kg for simplicity. Therefore, the total cost price of the tomatoes is $10.

Selling Tomatoes at Different Profit Margins

The shop owner sells 3 kg of tomatoes at a 10% profit, 4 kg at a 15% profit, and the remaining tomatoes at a 20% profit. Let's calculate the selling price of each batch of tomatoes.

Selling 3 kg of Tomatoes at 10% Profit

To calculate the selling price of 3 kg of tomatoes at a 10% profit, we need to find 10% of the cost price and add it to the cost price.

Cost price of 3 kg of tomatoes = 3 kg x $1 per kg = $3 Profit percentage = 10% Profit amount = 10% of $3 = 0.1 x $3 = $0.30 Selling price of 3 kg of tomatoes = Cost price + Profit amount = $3 + $0.30 = $3.30

Selling 4 kg of Tomatoes at 15% Profit

To calculate the selling price of 4 kg of tomatoes at a 15% profit, we need to find 15% of the cost price and add it to the cost price.

Cost price of 4 kg of tomatoes = 4 kg x $1 per kg = $4 Profit percentage = 15% Profit amount = 15% of $4 = 0.15 x $4 = $0.60 Selling price of 4 kg of tomatoes = Cost price + Profit amount = $4 + $0.60 = $4.60

Selling the Remaining Tomatoes at 20% Profit

The remaining tomatoes are 10 kg - 3 kg - 4 kg = 3 kg. To calculate the selling price of 3 kg of tomatoes at a 20% profit, we need to find 20% of the cost price and add it to the cost price.

Cost price of 3 kg of tomatoes = 3 kg x $1 per kg = $3 Profit percentage = 20% Profit amount = 20% of $3 = 0.20 x $3 = $0.60 Selling price of 3 kg of tomatoes = Cost price + Profit amount = $3 + $0.60 = $3.60

Calculating the Total Profit

Now that we have the selling prices of each batch of tomatoes, we can calculate the total profit earned by the shop owner.

Total revenue = Selling price of 3 kg of tomatoes + Selling price of 4 kg of tomatoes + Selling price of 3 kg of tomatoes = $3.30 + $4.60 + $3.60 = $11.50

Total cost price = Cost price of 10 kg of tomatoes = $10

Total profit = Total revenue - Total cost price = $11.50 - $10 = $1.50

Conclusion

In this scenario, the shop owner earned a total profit of $1.50 by selling tomatoes at different profit margins. The shop owner's ability to maximize his profits by selling tomatoes at the right prices is a key factor in his business success. By understanding the concept of profit margins and applying it to his business, the shop owner can increase his profits and stay competitive in the market.

Key Takeaways

The shop owner sold 3 kg of tomatoes at a 10% profit, 4 kg at a 15% profit, and the remaining tomatoes at a 20% profit.
The total cost price of the tomatoes was $10.
The total revenue earned by the shop owner was $11.50.
The total profit earned by the shop owner was $1.50.

Real-World Applications

The concept of profit margins is crucial in business, and it can be applied to various industries and scenarios. For instance, a restaurant owner can increase his profits by selling dishes at the right prices, taking into account the cost of ingredients, labor, and other expenses. Similarly, a retailer can maximize his profits by selling products at the right prices, considering the cost of goods, marketing, and other expenses.

Mathematical Formulas

The following mathematical formulas were used to calculate the selling prices and total profit:

Selling price = Cost price + (Profit percentage x Cost price)
Total revenue = Selling price of 3 kg of tomatoes + Selling price of 4 kg of tomatoes + Selling price of 3 kg of tomatoes
Total profit = Total revenue - Total cost price

Conclusion

Introduction

In our previous article, we explored how a vegetable shop owner can earn a total profit by selling tomatoes at different profit margins. In this Q&A article, we will answer some common questions related to the scenario and provide additional insights into the world of business and profit margins.

Q: What is the cost price of the tomatoes?

A: The cost price of the tomatoes is assumed to be $1 per kg for simplicity. Therefore, the total cost price of the 10 kg of tomatoes is $10.

Q: Why did the shop owner sell 3 kg of tomatoes at a 10% profit, 4 kg at a 15% profit, and the remaining tomatoes at a 20% profit?

A: The shop owner sold the tomatoes at different profit margins to maximize his profits. By selling the tomatoes at different profit margins, the shop owner can increase his overall profit and stay competitive in the market.

Q: How did the shop owner calculate the selling price of each batch of tomatoes?

A: The shop owner calculated the selling price of each batch of tomatoes by finding the profit percentage of the cost price and adding it to the cost price. For example, to calculate the selling price of 3 kg of tomatoes at a 10% profit, the shop owner found 10% of the cost price ($3) and added it to the cost price to get the selling price of $3.30.

Q: What is the total revenue earned by the shop owner?

A: The total revenue earned by the shop owner is $11.50, which is the sum of the selling prices of each batch of tomatoes.

Q: What is the total profit earned by the shop owner?

A: The total profit earned by the shop owner is $1.50, which is the difference between the total revenue and the total cost price.

Q: How can the shop owner increase his profits further?

A: The shop owner can increase his profits further by selling the tomatoes at higher profit margins or by reducing the cost price of the tomatoes. Additionally, the shop owner can also consider selling the tomatoes in bulk or at a discount to increase sales and revenue.

Q: What are some real-world applications of profit margins?

A: Profit margins are crucial in business and can be applied to various industries and scenarios. For instance, a restaurant owner can increase his profits by selling dishes at the right prices, taking into account the cost of ingredients, labor, and other expenses. Similarly, a retailer can maximize his profits by selling products at the right prices, considering the cost of goods, marketing, and other expenses.

Q: What mathematical formulas were used to calculate the selling prices and total profit?

A: The following mathematical formulas were used to calculate the selling prices and total profit:

Selling price = Cost price + (Profit percentage x Cost price)
Total revenue = Selling price of 3 kg of tomatoes + Selling price of 4 kg of tomatoes + Selling price of 3 kg of tomatoes
Total profit = Total revenue - Total cost price

Conclusion

In conclusion, the shop owner's ability to maximize his profits by selling tomatoes at different profit margins is a key factor in his business success. By understanding the concept of profit margins and applying it to his business, the shop owner can increase his profits and stay competitive in the market. The mathematical formulas used in this scenario can be applied to various industries and scenarios, making it a valuable tool for business owners and entrepreneurs.

Key Takeaways

The shop owner sold 3 kg of tomatoes at a 10% profit, 4 kg at a 15% profit, and the remaining tomatoes at a 20% profit.
The total cost price of the tomatoes was $10.
The total revenue earned by the shop owner was $11.50.
The total profit earned by the shop owner was $1.50.
The shop owner can increase his profits further by selling the tomatoes at higher profit margins or by reducing the cost price of the tomatoes.

Real-World Applications

The concept of profit margins is crucial in business and can be applied to various industries and scenarios. For instance, a restaurant owner can increase his profits by selling dishes at the right prices, taking into account the cost of ingredients, labor, and other expenses. Similarly, a retailer can maximize his profits by selling products at the right prices, considering the cost of goods, marketing, and other expenses.

Mathematical Formulas

The following mathematical formulas were used to calculate the selling prices and total profit:

Selling price = Cost price + (Profit percentage x Cost price)
Total revenue = Selling price of 3 kg of tomatoes + Selling price of 4 kg of tomatoes + Selling price of 3 kg of tomatoes
Total profit = Total revenue - Total cost price