A trader earns a profit of 30% by selling an article X and loses 16% by selling another article Y. The ratio of the cost prices of X and Y is 3 ∶ 4, then what is the gain/loss in the entire transaction (correct to one decimal place)?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Gain of 3.7%
Given:
Cost prices of X and Y is 3 ∶ 4
A trader earns a profit of 30% by selling an article X and loses 16% by selling another article Y
Formula used:
Selling price = Cost price + cost price × profit% ---- (1)
Selling price = cost price - cost price × loss% ---- (2)
Profit = Selling price - cost price
Profit% = (Profit/cost price) × 100
Calculations:
Let the cost price of X and Y be 30x and 40x
Using equation (1) and (2), we get
Selling price of X = 30x + 30x × 30% = 39x
Selling price of Y = 40x - 40x × 16% = 33.6x
Total selling price = 39x + 33.6x = 72.6x
Total cost price = 30x + 40x = 70x
Profit = 72.6x - 70x = 2.6x
Required profit percentage = (2.6x/70x) × 100 = 3.7%