A man sold two articles for ₹1,200 each. On one he gained 25% and on the other…
2026
A man sold two articles for ₹1,200 each. On one he gained 25% and on the other he lost 25%. What is his total profit or loss?
Answer: B. Deficit of ₹160 — ConceptWhen the selling price and the profit or loss rate are known, recover the cost price using CP = SP/(1 + gain rate) or CP = SP/(1 − loss rate). Equal…
- A.
Profit of ₹80
- B.
Deficit of ₹160
- C.
No profit or deficit
- D.
Deficit of ₹80
Attempted by 27 students.
Show answer & explanation
Correct answer: B
Concept
When the selling price and the profit or loss rate are known, recover the cost price using CP = SP/(1 + gain rate) or CP = SP/(1 − loss rate).
Equal selling prices with equal gain and loss rates do not cancel automatically because the two cost prices are different.
Application
Convert the rate: 25% = 25/100 = 0.25.
For the gain article, the selling-price factor is 1 + 0.25 = 1.25.
Its cost price is CP = ₹1,200/1.25 = ₹960.
For the loss article, the selling-price factor is 1 − 0.25 = 0.75.
Its cost price is CP = ₹1,200/0.75 = ₹1,600.
Total CP = ₹960 + ₹1,600 = ₹2,560, while total SP = ₹1,200 + ₹1,200 = ₹2,400.
Net result = total SP − total CP = ₹2,400 − ₹2,560 = −₹160, so the net result is a loss of ₹160.
Cross-check
Combined loss rate = ₹160/₹2,560 = 0.0625 = 6.25%.
A 6.25% loss on ₹2,560 gives ₹2,560 × (1 − 0.0625) = ₹2,560 × 0.9375 = ₹2,400, matching the combined selling price.
Result
Therefore, the total loss is ₹160.