Read the following sentences and answer the question that follows based on all or a few of these statements. Note that all statements are true but may or may not be useful to reach the desired answer.

A retail store bought a batch of electronic gadgets and sold them at various prices

1. The store initially purchased 50 gadgets at a total cost of INR 5,000. 2. The store was awarded for being the best retailer in 2021.

3. The store had a carpet area of 800 square feet.

4. The selling price of each gadget was INR 120.

5. The store incurred an additional cost of INR 500 for packaging and shipping the

gadgets to the store.

6. The store offered a discount of 10% on the selling price of each gadget during a promotional sale.

7. The total revenue generated from selling the gadgets was Rs. 6,000.

8. The number of gadgets sold was 40.

9. The cost price per gadget, including packaging and shipping, was Rs.110.

10. The store paid a commission of 5% on the total revenue earned from selling the gadgets.

11. The store incurred a miscellaneous expense of Rs.100 during the promotional sale.

12. The store had an unsold inventory of 10 gadgets. These factors will also affect the profit/loss

Determine the profit or loss percentage for the given scenario.

To determine the profit or loss percentage for the given scenario, we need to consider the following factors:

1. Cost of gadgets.
2. Additional costs (packaging, shipping, miscellaneous).
3. Revenue from sales.
4. Discounts and commissions.

Let's break down each step:

### Step 1: Calculate the Total Cost
The store purchased 50 gadgets at a total cost of INR 5,000.
The additional cost for packaging and shipping is INR 500.
The miscellaneous expense during the promotional sale is INR 100.

**Total Cost:**
\[ \text{Total Cost} = \text{Cost of gadgets} + \text{Packaging and Shipping} + \text{Miscellaneous Expense} \]
\[ \text{Total Cost} = 5,000 + 500 + 100 = 5,600 \]

### Step 2: Calculate the Revenue
The store sold 40 gadgets at a selling price of INR 120 each.
During the promotional sale, a 10% discount was offered.

**Discounted Selling Price:**
\[ \text{Discounted Selling Price} = 120 \times (1 - 0.10) = 120 \times 0.90 = 108 \]

**Total Revenue:**
\[ \text{Total Revenue} = \text{Number of gadgets sold} \times \text{Discounted Selling Price} \]
\[ \text{Total Revenue} = 40 \times 108 = 4,320 \]

### Step 3: Calculate the Commission
The store paid a commission of 5% on the total revenue.

**Commission:**
\[ \text{Commission} = \text{Total Revenue} \times 0.05 \]
\[ \text{Commission} = 4,320 \times 0.05 = 216 \]

### Step 4: Calculate the Profit or Loss
The profit or loss is determined by subtracting the total cost and commission from the total revenue.

**Profit or Loss:**
\[ \text{Profit or Loss} = \text{Total Revenue} - (\text{Total Cost} + \text{Commission}) \]
\[ \text{Profit or Loss} = 4,320 - (5,600 + 216) \]
\[ \text{Profit or Loss} = 4,320 - 5,816 = -1,496 \]

The store incurred a loss of INR 1,496.

### Step 5: Calculate the Loss Percentage
The loss percentage is calculated based on the total cost.

**Loss Percentage:**
\[ \text{Loss Percentage} = \left( \frac{\text{Loss}}{\text{Total Cost}} \right) \times 100 \]
\[ \text{Loss Percentage} = \left( \frac{1,496}{5,600} \right) \times 100 \]
\[ \text{Loss Percentage} \approx 26.71\% \]

### Conclusion
The store incurred a loss of approximately 26.71%.

Would you like further details or have any questions? Here are some related questions to expand on this information:

1. How would the profit or loss change if the selling price were different?
2. What impact would reducing the discount to 5% have on the profit or loss?
3. How would an increase in packaging costs affect the total cost and profit or loss?
4. What would be the profit or loss percentage if the store sold all 50 gadgets?
5. How can the store reduce its miscellaneous expenses to improve profitability?
6. What if the commission rate was negotiated to 3% instead of 5%?
7. How does the unsold inventory affect the overall financial outcome?
8. What strategies could the store employ to avoid losses in future sales?

**Tip:** Always consider both fixed and variable costs when calculating the profitability of sales to get a comprehensive understanding of financial outcomes.

Learn how to calculate profit or loss percentage using a retail store's gadget sales example. Includes detailed steps on determining total costs, revenue, discounts, commissions, and final profit or loss percentage. Suitable for understanding financial calculations in retail business scenarios.

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