A shopkeeper sold 3 wristwatches for ₹2,800 each. If he has sold the watches with 40%, 25% and 12% profit, respectively, then find his overall profit percentage (correct to 2 decimal places).
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 0.2463.
Let's calculate the cost price of each wristwatch.
First watch:
Selling price (SP1) = ₹2,800
Profit percentage = 40%
Cost price (CP1) = SP1 / (1 + Profit percentage/100) = 2800 / (1 + 0.4) = ₹2,000
Second watch:
Selling price (SP2) = ₹2,800
Profit percentage = 25%
Cost price (CP2) = SP2 / (1 + Profit percentage/100) = 2800 / (1 + 0.25) = ₹2,240
Third watch:
Selling price (SP3) = ₹2,800
Profit percentage = 12%
Cost price (CP3) = SP3 / (1 + Profit percentage/100) = 2800 / (1 + 0.12) = ₹2,500
Total cost price (Total CP) = CP1 + CP2 + CP3 = 2000 + 2240 + 2500 = ₹6,740
Total selling price (Total SP) = SP1 + SP2 + SP3 = 2800 × 3 = ₹8,400
Overall profit = Total SP - Total CP = 8400 - 6740 = ₹1,660
Overall profit percentage = (Overall profit / Total CP) × 100 = (1660 / 6740) × 100 ≈ 24.63%
Therefore, the shopkeeper's overall profit percentage is approximately 24.63%.