Raju buys 75 articles at the same price each. He sells one-third of them at a profit of 40% and 20% of the remaining at a profit of 20%. He sells the remaining articles at a loss equal to the cost price of 7 articles. What is his gain/loss per cent in the entire transaction?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Gain, %.
Let the cost price of each article be Rs. 1.
The cost price of 25 articles i.e. (1/3)rd of 75 = Rs. 25
The selling price of 25 articles = 25 + 40% of 25 = 25 + 10 = Rs. 35
Number of remaining articles after selling 25 articles = 75 - 25 = 50
The cost price of 10 articles = 20% of 50 = Rs. 10
The selling price of 10 articles at 20% profit = 10 + 20% of 10 = 10 + 2 = Rs. 12
Number of articles left after selling 35 articles = 50 - 10 = 40
The cost price of 40 articles = Rs. 40
The selling price of 40 articles = The cost price of 40 articles - the cost price of 7 articles
⇒ 40 - 7 = Rs. 33
Total selling price = 35 + 12 + 33 = Rs. 80
The total cost price = Rs. 75
Now, profit% = (5/75) × 100% = 100/15 % = 20/3 % = 6%