A trader buys 150 mobile phones at ₹8,000 each. He finds 5% of the phones defective and sells them at a 50% discount (on cost price). The rest are sold at a 10% profit. What is his overall profit or loss?
Show answer & explanation
Correct answer: D
Explanation
Total mobile phones = 150
Cost price = 150 × 8,000 = ₹12,00,000
5% defective = 7.5 ≈ 8 phones
Selling price of defective phones = 50% of 8,000 = 4,000
Amount realized from 8 phones = 8 × 4,000 = ₹32,000
Good phones = 142
Selling price at 10% profit = 8,000 × 1.10 = 8,800
142 × 8,800 = ₹12,49,600
Total selling price = 12,49,600 + 32,000 = ₹12,81,600
Profit = 12,81,600 − 12,00,000 = ₹81,600