Vikas purchased two bicycles, first for Rs. 15000 and the second for Rs. 14000. He sold both the bicycles, first one at the profit of 10 percent and the second at a loss of 20 percent. What is the overall profit or loss?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Loss = Rs. 1300.
First Bicycle
Cost Price (C.P.) = Rs. 15,000
Profit = 10% of C.P
Selling Price (S.P.) = C.P. + Profit
S.P. = 15000 + 10/100 × 15000
⇒ 15000 + 1500 = Rs. 16500
Second Bicycle
Cost Price (C.P.) = Rs. 14,000
Loss = 20% of C.P
Selling Price (S.P.) = C.P. - Loss
S.P. = 14000 - 20/100 × 14000
⇒ 14000 - 2800 = Rs. 11200
Now,
Total Cost Price (C.P.) = 15,000 + 14,000 = Rs. 29,000
Total Selling Price (S.P.) = 16,500 + 11,200 = Rs. 27,700
Overall Profit or Loss = Total S.P. − Total C.P.
⇒ 27700 - 29000 = - 1300 [loss occurs]
Hence, The overall loss is Rs. 1,300