A man sells two articles for $120 each. If he makes a profit of 20% on the first

What’s inside this PDF?

Question: A man sells two articles for $120 each. If he makes a profit of 20% on the first article and a loss of 20% on the second article, what is his overall profit or loss percentage?

Options:

0%
5%
10%
15%

Correct Answer: 5%

Solution:

Cost price of first article = 120 / 1.2 = $100. Cost price of second article = 120 / 0.8 = $150. Total cost price = 100 + 150 = $250. Total selling price = 120 + 120 = $240. Loss = 250 - 240 = $10. Loss percentage = (10 / 250) * 100 = 4%.

Practice Questions

Q1

A man sells two articles for $120 each. If he makes a profit of 20% on the first article and a loss of 20% on the second article, what is his overall profit or loss percentage?

0%
5%
10%
15%

Questions & Step-by-Step Solutions

A man sells two articles for $120 each. If he makes a profit of 20% on the first article and a loss of 20% on the second article, what is his overall profit or loss percentage?

Step 1: Understand that the man sells two articles for $120 each.
Step 2: Calculate the selling price of the first article, which is $120.
Step 3: Since he makes a profit of 20% on the first article, we can find the cost price (CP) using the formula: Selling Price (SP) = CP + Profit.
Step 4: Rewrite the profit as 20% of the cost price: Profit = 0.2 * CP.
Step 5: So, SP = CP + 0.2 * CP = 1.2 * CP. Therefore, CP = SP / 1.2.
Step 6: Substitute the selling price of the first article: CP of first article = 120 / 1.2 = $100.
Step 7: Now, calculate the selling price of the second article, which is also $120.
Step 8: Since he incurs a loss of 20% on the second article, we can find the cost price using the formula: SP = CP - Loss.
Step 9: Rewrite the loss as 20% of the cost price: Loss = 0.2 * CP.
Step 10: So, SP = CP - 0.2 * CP = 0.8 * CP. Therefore, CP = SP / 0.8.
Step 11: Substitute the selling price of the second article: CP of second article = 120 / 0.8 = $150.
Step 12: Calculate the total cost price by adding the cost prices of both articles: Total CP = 100 + 150 = $250.
Step 13: Calculate the total selling price by adding the selling prices of both articles: Total SP = 120 + 120 = $240.
Step 14: Determine the loss by subtracting the total selling price from the total cost price: Loss = Total CP - Total SP = 250 - 240 = $10.
Step 15: Calculate the loss percentage using the formula: Loss Percentage = (Loss / Total CP) * 100.
Step 16: Substitute the values: Loss Percentage = (10 / 250) * 100 = 4%.

Profit and Loss Calculation – Understanding how to calculate profit and loss percentages based on cost price and selling price.
Percentage Change – Applying percentage formulas to determine overall profit or loss.
Cost Price and Selling Price Relationship – Recognizing the relationship between cost price, selling price, and profit/loss.

A man sells two articles for $120 each. If he makes a profit of 20% on the first

What’s inside this PDF?

A man sells two articles for $120 each. If he makes a profit of 20% on the first

Practice Questions

Questions & Step-by-Step Solutions

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