If 70 percent of total articles are sold at a profit of 20 percent and remaining articles are sold at a loss of 10 percent, then what will be the overall profit percentage?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 11 percent.
Let the total number of articles be x and the cost price be y
70 percent of total articles are sold at a profit of 20 percent
Number of articles = 0.7x
⇒ S.P. per article = y + 0.2y = 1.2y
⇒ Total S.P. of the articles = 0.7x × 1.2y = 0.84xy
The remaining 30 percent of total articles are sold at a loss of 10 percent
⇒ Number of articles = 0.3x
⇒ S.P. of article = y - 0.1y = 0.9y
Total S.P. for these articles = 0.3x × 0.9y = 0.27xy
Now,
Total C.P. = x × y = xy
⇒ Total S.P. = 0.84xy + 0.27xy = 1.11xy
Overall Profit = Total S.P. - Total C.P.
⇒ Profit = 1.11xy - xy = 0.11xy
Now,
⇒ Profit% = (Profit/C.P.) × 100
⇒ 0.11xy/xy × 100
⇒ 0.11 × 100 = 11%
Therefore, the overall profit percentage is 11%