A trader sold half of his articles at 60% profit, half of the remaining at 20% loss and the rest was sold at the cost price. In total transaction his gain % or loss % will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Gain 25%
Gain % is worked out on the total cost price, so add up the selling prices of the three parts and compare with the total cost.
Assuming the total cost price of all the articles to be 100:
Half the articles (cost 50) at 60% profit: 50 × 1.6 = 80
Half of the remaining half (cost 25) at 20% loss: 25 × 0.8 = 20
The rest (cost 25) at cost price: 25
Total selling price = 80 + 20 + 25 = 125, so the gain is 25 on 100, a gain of 25%