Aditya sells two wrist watches from his personal collection for Rs 12,600 each. On the first watch, he gains 26% and, on the second, he losses 10%. Find the overall gain or loss percentage.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. Gain of 5%
The selling price of each wristwatch is 12600
The profit on the first watch = 26%
The loss on the second watch = 10%
We know, Cost price = (Selling price) × [100/(100 + Profit/Loss)]
and, Profit = Profit/(Cost price) × 100
Total selling price = 2 × 12600 = 25200
The cost price of two watches = 12600 × [100/(100 + 26)] + 12600 × [100/(100 -
10) =[12600 × (100/126)] + [12600 x (100/90)]
= 10000 + 14000
= 24000
The total profit = 25200 - 24000 = 1200
The gain percentage = (1200/24000) × 100 = 5%
The overall gain percentage is 5%