A man buys two watches ‘A’ and ‘B’ at a total cost of ₹800. He sells both watches at the same selling price, and earns a profit of 18% on watch ‘A’ and incurs a loss of 22% on watch ‘B’. What are the cost prices of the two watches? (two place after decimal).
Answer & explanation
Correct answer: option 2
We know that,
18% = \(\frac{9}{50}\)
22% = \(\frac{11}{50}\)
CP : SP of watch A = 50 : 59
CP : SP of watch B = 50 : 39
Making SP of both the watches equal
CP : SP of watch A = 50 : 59 --- (1) × 39
CP : SP of watch B = 50 : 39 --- (2) × 59
Total CP of watch A and B = 50 × 39 + 50 × 59 = 4900
4900 unit = Rs. 800
1 unit = \(\frac{800}{4900}\)
1950 unit = \(\frac{800}{4900}\) × 1950 = 318.37
CP of watch A = 318.37
CP of watch B = 800 - 318.37 = 481.63