The cost prices of a table and a chair are ₹400 and ₹1,200. respectively. The table and the chair are sold at a profit of 50% and 20% respectively. What is the overall profit percentage gained?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 27.5%
The cost price of the table = 400
Selling price = Cost price × (100 + profit %)/100
If it is sold at a profit of 50%, then the selling price would be = 150% of 400
⇒ {150/100} × 400 = 600
The cost price of the chair = 1200
If it is sold at a profit of 20%, then the selling price would be = 120% of 1200
⇒ {120/100} × 1200 = 1440
Thus, the combined selling price of both = 600 + 1440 = 2040
The combined cost price = 400 + 1200 = 1600
The net profit percentage = [{2040 - 1600}/1600] × 100 = {440/1600} × 100 = 27.5%