A merchant sold two refrigerators for Rs. 10,000 each. On one refrigerator, he incurred a 20% loss, and on the other, he gained 20%. What was his profit/loss percentage on the whole transaction?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Loss of 4%.
The cost price of the first refrigerator = (10000 × 100) / (100 - 20) = Rs. 12500.
The cost price of the second refrigerator = (10000 × 100) / (100 + 20) = Rs. 8333.33.
Total cost price = Rs. 12500 + Rs. 8333.33 = Rs. 20833.33.
Total selling price = Rs. 10000 × 2 = Rs. 20000.
Loss = Rs. 20833.33 - Rs. 20000 = Rs. 833.33.
Loss percentage = (833.33 / 20833.33) × 100 = 4%.
Therefore, the merchant incurred a loss of 4% on the whole transaction.
The answer is 4% loss.