A person bought 80 pens at the rate of Rs.80 per pen. He sells 40pens at a loss of 20 percent. If profit of 20 percent is earned on the all pens together, then what will be the profit percentage on the remaining 40 pens?
Answer & explanation
Correct answer: option 1
Cost Price of 80 pens = 80 × 80 = Rs. 6400
Selling Price of a loss-making pens = 80 - 20% of 80 = 80 - 16 = Rs. 64
Selling Price of 40 loss making pens = 40 × 64 = Rs. 2560
Since, he made 20% profit on all pens together.
Selling price of all pens together = 6400 + 20% of 6400
= 6400 + 1280 = Rs.7680
Selling Price of remaining 40 pens =7680 - 2560 = Rs. 5120
Cost Price of 40 pens = 80 ×40 = Rs. 3200
Profit on 40 pens = 5120 - 3200 = Rs. 1920
Profit % on remaining 40 pens= \(\frac{1920}{3200}\) × 100 = 60%