A trader sells type X coffee at 120 per kg, suffering a 20% loss. He sells type Y coffee at 180 per kg, suffering a 10% loss. If he mixes the two types in equal quantities and sells the mixture at 150 per kg, what is his overall profit or loss percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Loss of 14.29%.
Selling price of X = 120, loss = 20%
Cost price of X = 120 × 100/80 = 150
Selling price of Y = 180, loss = 10%
Cost price of Y = 180 × 100/90 = 200
average cost price = (150 + 200) ÷ 2 = 350 ÷ 2 = 175
Selling price of mixture = 150
Loss = 175 − 150 = 25
Loss% = (25 ÷ 175) × 100 = 14.29%