A trader sells two computers at the same price, making a profit of on one and a loss of on the other. What is the net loss or profit percentage on the transaction ?
Show answer & solutionHide answer & solution
Option C
Approach
Equal selling prices force the two cost prices apart; choose a convenient common selling price so both cost prices come out whole.
Step-by-step solution
- 1Take the common selling price as Rs. for each computer
Why: is divisible by both and , so both cost prices stay whole numbers — the only reason for picking it.
- 2Profit computer:
Why: A gain multiplies the cost price by , so dividing undoes it.
- 3Loss computer:
Why: A loss multiplies the cost price by . The loss-making machine cost nearly twice the other, which is why the deal cannot break even.
- 4Total ; total
Why: Costs and revenues are added separately before any percentage is taken.
- 5Loss ; loss percent
Why: The percentage is always measured on the total cost price, never on the selling price.
Shortcut
With the same selling price and equal percentages up and down, there is always a loss of ; here loss.
Common mistakes
Option A
Nothing reaches ; the loss fraction is , which is and not at .
Option B
Nothing reaches a gain either.
Option D
Right magnitude, wrong direction: the dearer computer is the one sold at a loss, so the transaction must lose, not gain.
Skills used