What is the total gain of the trader?

Aug 2014
507
1
India
A trader marked his goods at 20% above CP of rs 245346. He sold half of the stock at MP & one quarter at discount of 20% on MP and rest is at discount 40% on MP. Find total gain?

Sol: CP 100 corresponds to MP 120
50 corresponds to 60
25 corresponds to 24
25 corresponds to 18
100 corresponds to 102

Profit 2%

Please explain the solution.
 
Last edited:

skipjack

Forum Staff
Dec 2006
21,478
2,470
If the goods were all sold at 120% of CP, no addition would be needed - one could just say that the overall profit was 20%.

The solution gives a breakdown corresponding to the various selling prices of the goods:
50% of 120 is 60
25% of (100 - 20)% of 120 is 24
25% of (100 - 40)% of 120 is 18
The total revenue is 102% of combined CP, so the overall profit is 2%.

The problem statement contains two ambiguities - it doesn't state whether the "total gain" relates to all the goods or just those that are stated to have been sold, and it doesn't state whether the answer can be given as a profit percentage.
 
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