A shopkeeper buys 120 pens at a rate of 4 pens for ₹5. He buys another 120 pens at a different rate of 2 pens for ₹3. He then mixes all the pens and sells them at a rate of 3 pens for ₹8. What is his overall profit or loss percentage?
Show answer & explanation
Correct answer: B
Explanation
Given:
First purchase = 4 pens for ₹5 ⇒ 120 pens
Second purchase = 2 pens for ₹3 ⇒ 120 pens
Total pens = 240
According to the formula:
CP = Total Cost, SP = Total Selling Price
Profit % = (Profit / CP) × 100
First Cost = (120/4) × 5 = 30 × 5 = 150
Second Cost = (120/2) × 3 = 60 × 3 = 180
Total Cost = 150 + 180 = 330
Selling Price:
3 pens = ₹8
240 pens = (240/3) × 8 = 80 × 8 = 640
Profit = 640 − 330 = 310
Profit % = (310 / 330) × 100 ≈ 93.93%