The cost price of two fans is the same. One fan is sold at a loss of 20% and the other fan is sold at loss of 60%. What will be the overall loss percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 40%
Given:
The cost price of two fans is the same.
One fan is sold at a loss of 20% and the other fan is sold at loss of 60%
Let the cost price of the fans be 100x
Cost Price = Selling Price × 100/(100 - loss %)
Selling price after 20% loss = 80% of 100x = 80x
Selling price after 60% loss = 40% of 100x = 40x
Total cost price = 100x + 100x = 200x
Total selling price = 80x + 40x = 120x
Loss = CP - SP = 200x - 120x = 80x
Loss% = (80x/200x) × 100 = 40%