A trader purchases 100 smartphones at Rs. 12,000 each. He spends Rs. 30,000 on transportation and Rs. 20,000 on advertising. 10 phones are damaged in transit and sold at 50% loss. The remaining are sold at a 25% profit. What is his net profit or loss?
Show answer & explanation
Correct answer: A
Explanation
Total Purchase = 100 × 12,000 = 1,200,000
Total Cost = 1,200,000 + 30,000 + 20,000 = 1,250,000
CP of 10 phones = 10 × 12,000 = 120,000
SP (50% Loss) = 120,000 × 1/2 = 60,000
CP of 90 phones = 90 × 12,000 = 1,080,000
SP (25% Profit) = 1,080,000 × 1.25 = 1,350,000
Total SP = 60,000 + 1,350,000 = 1,410,000
Profit = 1,410,000 − 1,250,000 = ₹160,000 (Profit)