Question
Calculate the total revenue generated from each clothing
item over the six-month period. Based on this data, determine the overall profit or loss for the boutique. Provide detailed calculations for each clothing item. Direction: A small business, Trendy Boutique , specializes in three types of clothing items: Designer Dresses , Casual Wear , and Formal Suits . Over the past six months, the boutique has recorded sales data as follows: Designer Dresses: Cost Price (CP): ₹1,500, Selling Price (SP): ₹2,200 Casual Wear: Cost Price (CP): ₹800, Selling Price (SP): ₹1,200 Formal Suits: Cost Price (CP): ₹2,500, Selling Price (SP): ₹3,500 The total units sold over six months for each clothing item are as follows: Designer Dresses: 300 units Casual Wear: 600 units Formal Suits: 200 units During this period, the boutique encountered some fluctuations in sales due to seasonal demand, which affected the profit margins for each product category.Solution
Total Revenue from Designer Dresses = 300 × 2,200 = ₹660,000 Total Revenue from Casual Wear = 600 × 1,200 = ₹720,000 Total Revenue from Formal Suits = 200 × 3,500 = ₹700,000 Total Revenue = 660,000 + 720,000 + 700,000 = ₹2,080,000 Total Cost for Designer Dresses = 300 × 1,500 = ₹450,000 Total Cost for Casual Wear = 600 × 800 = ₹480,000 Total Cost for Formal Suits = 200 × 2,500 = ₹500,000 Total Cost = 450,000 + 480,000 + 500,000 = ₹1,430,000 Overall Profit = Total Revenue - Total Cost = 2,080,000 - 1,430,000 = ₹650,000
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