A trader bought two articles for $500 each and sold them for $600 and $400 respe

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Question: A trader bought two articles for $500 each and sold them for $600 and $400 respectively. What is his overall profit or loss?

Options:

Correct Answer: $100 profit

Solution:

Total Cost Price = 500 + 500 = 1000. Total Selling Price = 600 + 400 = 1000. Overall Profit/Loss = 1000 - 1000 = $0.

A trader bought two articles for $500 each and sold them for $600 and $400 respectively. What is his overall profit or loss?

A trader bought two articles for $500 each and sold them for $600 and $400 respectively. What is his overall profit or loss?

Step 1: Identify the cost price of the first article, which is $500.
Step 2: Identify the cost price of the second article, which is also $500.
Step 3: Calculate the total cost price by adding the cost prices of both articles: 500 + 500 = 1000.
Step 4: Identify the selling price of the first article, which is $600.
Step 5: Identify the selling price of the second article, which is $400.
Step 6: Calculate the total selling price by adding the selling prices of both articles: 600 + 400 = 1000.
Step 7: Calculate the overall profit or loss by subtracting the total cost price from the total selling price: 1000 - 1000 = 0.
Step 8: Determine that since the result is $0, there is no overall profit or loss.

Cost Price and Selling Price – Understanding the difference between the cost price (CP) and selling price (SP) of items to calculate profit or loss.
Profit and Loss Calculation – Calculating overall profit or loss by subtracting total cost from total selling price.