Goods are bought for Rs 450 and one-third of them is sold at a loss of 10%. At what gain percent should the rest be sold so as to gain 20% on the whole transaction?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 35%
Work out the total selling price needed for 20% on the whole, take away what the first part brings in, and compare the rest with its own cost.
Total selling price needed \(\displaystyle =450\times\frac{120}{100}=\) Rs 540
Cost of one-third \(=\) Rs 150, sold at 10% loss for \(150\times0.9=\) Rs 135
Cost of the rest \(=450-150=\) Rs 300
The rest must be sold for \(540-135=\) Rs 405
Gain on the rest \(=405-300=\) Rs 105, so gain % \(\displaystyle =\frac{105}{300}\times100=35\%\)
The rest must be sold at a gain of 35%.