When a shopkeeper sells item A for ₹ 384, then there is a loss of 20% and when…

2023

When a shopkeeper sells item A for ₹ 384, then there is a loss of 20% and when he sells item B for ₹ 400, then there is a profit of 25%. What is the profit/loss percent, if he sells both items for a total of ₹ 852?

  1. A.

    Profit, 6.5%

  2. B.

    Loss, 5%

  3. C.

    Loss, 7%

  4. D.

    Profit, 7.5%

Show answer & explanation

Correct answer: A

Concept: If an article is sold at a loss of r%, its cost price is CP = SP / (1 - r/100); if sold at a profit of r%, CP = SP / (1 + r/100). When two items are sold together, the overall profit or loss percent is worked out from the combined cost price and the combined selling price: Overall % = ((Total SP - Total CP) / Total CP) x 100.

  1. Cost price of item A: SP = ₹384 with a loss of 20%, so CP(A) = 384 / (1 - 20/100) = 384 / 0.80 = ₹480.

  2. Cost price of item B: SP = ₹400 with a profit of 25%, so CP(B) = 400 / (1 + 25/100) = 400 / 1.25 = ₹320.

  3. Combined cost price: CP(A) + CP(B) = 480 + 320 = ₹800.

  4. Combined selling price when both items are sold together, as given in the question, is ₹852.

  5. Overall profit = Combined SP - Combined CP = 852 - 800 = ₹52.

  6. Overall profit percent = (52 / 800) x 100 = 6.5%.

Cross-check: a profit of 6.5% on the combined cost price of ₹800 gives 800 x 1.065 = ₹852, which matches the combined selling price stated in the question, confirming an overall profit of 6.5%.

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