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Arithmetic Ability
Profit and Loss

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A merchant buys two articles for Rs.600. He sells one of them at a profit of 22% and the other at a loss of 8% and makes no profit or loss in the end. What is the selling price of the article that he sold at a loss ?

A. Rs. 404.80

B. Rs. 536.80

C. Rs.440

D. Rs. 160

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Correct choice: A

Explanation:

Let C1 be the cost price of the first article and C2 be the cost price of the second article. Let the first article be sold at a profit of 22%, while the second one be sold at a loss of 8%. We know, C1 + C2 = 600. The first article was sold at a profit of 22%. Therefore, the selling price of the first article = C1 + (22/100)C1 = 1.22C1 The second article was sold at a loss of 8%. Therefore, the selling price of the second article = C2 - (8/100)C2 = 0.92C2. The total selling price of the first and second article = 1.22C1 + 0.92C2. As the merchant did not make any profit or loss in the entire transaction, his combined selling price of article 1 and 2 is the same as the cost price of article 1 and 2. Therefore, 1.22C1 + 0.92C2 = C1+C2 = 600 As C1 + C2 = 600, C2 = 600 - C1. Substituting this in 1.22C1 + 0.92C2 = 600, we get 1.22C1 + 0.92(600 - C1) = 600 or 1.22C1 - 0.92C1 = 600 - 0.92*600 or 0.3C1 = 0.08*600 = 48 or C1 = 48/(0.3) = 160. If C1 = 160, then C2 = 600 - 160 = 440. The item that is sold at loss is article 2. The selling price of article 2 = 0.92*C2 = 0.92*440 = 404.80.

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Arithmetic Ability Profit and Loss

Arithmetic Ability
Profit and Loss