A man buys two watches ‘A’ and ‘B’ at a total cost of Rs. 800. He sells both watches at the same selling price, and earns a profit of 18% on watch ‘A’ and incurs a loss of 22% on watch ‘B’. What are the cost prices of the two watches? (Two-place after the decimal).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. A = Rs. 318.37 and B = Rs. 481.63
Let the selling price be 'x'.
Total cost price = Cost price of A + Cost price of B
⇒ 800 = (x/(100 + 18)) × 100 + (x/(100 - 22)) × 100
⇒ 118x + 78x = 8 × 78 × 118
⇒ 196x = 73632
⇒ x = 375.67
Cost Price of A = 375.67/1.18
⇒ Rs.318.37
Cost Price of B = 375.67/0.78
⇒ Rs.481.63