A shopkeeper sells 20% of his stock at 10% profit ans sells the remaining at a loss of 5%. He incurred an overall loss of Rs. 400. Find the total worth of the stock?
Correct answer: B. Rs. 20000
- A. Rs. 25000
- B. Rs. 20000
- C. Rs. 15000
- D. Rs. 22000
- E. None of these
Explanation
On 20% of the stock, the profit is 10% x 20% = 2% of the total cost; on the remaining 80%, the loss is 5% x 80% = 4% of the total cost. The net loss is therefore 2% of the stock's cost, so 2% x total cost = Rs. 400 and total cost = Rs. 400 ÷ 0.02 = Rs. 20000. The likely wrong choice is Rs. 25000, which averages the 10% profit and 5% loss without weighting them by the quantities sold.
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About Profit and Loss
Profit and loss compare the cost price and selling price of an item, using profit or loss percentages based on the cost price unless stated otherwise. Questions include marked price, discount, successive discounts, commission, and finding an unknown price, with care needed to distinguish discount from loss.
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