A trader sells two chairs for Rs 2,400 each. On one chair he gains 20% and on the other he loses 20%.
Consider the following statements:
I. On the whole, the trader loses 4%.
II. The trader’s overall loss is Rs 200.
Which of the above statements is/are correct?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both I and II
With the same selling price, the chair sold at a loss has the larger cost price, so an equal gain % and loss % give an overall loss.
I. On the whole, the trader loses 4%. — Correct. The total cost is Rs 5,000 and the total sale is Rs 4,800.
CP of the first chair \(=\displaystyle\frac{2400}{1.20}=\) Rs 2000
CP of the second chair \(=\displaystyle\frac{2400}{0.80}=\) Rs 3000
Total CP \(=\) Rs 5000; total SP \(=2\times2400=\) Rs 4800
Loss % \(=\displaystyle\frac{200}{5000}\times100=4\%\)
II. The trader’s overall loss is Rs 200. — Correct. Total cost minus total sale is \(5000-4800=\) Rs 200.