A person bought 80 pens at the rate of Rs. 80 per pen. He sells 40 pens at a loss of 20 percent. If a profit of 20 percent is earned on all the pens together, then what will be the profit percentage on the remaining 40 pens?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 60%.
CP of all pens = 80 × 80 = 6400
SP of all pens = (120/100) × 6400 = 7680
CP of first 40 pens = 40 × 80 = 3200
SP of the first 40 pens = (80/100) × 3200 = 2560
SP of the remaining 40 pens = 7680 - 2560 = 5120
CP of the remaining 40 pens = 3200
Profit = 5120 - 3200 = 1920
Profit percentage = (1920/3200) × 100 = 60%