Karan sells two articles for Rs 64.50 in all. He sells the first at a profit of 15% and the second at a loss of 20%. If the cost price of the first article is equal to the selling price of the second, find his overall profit or loss (in Rs).
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 3
Write every price in terms of one unknown, the cost price of the first article. The total selling price then fixes this unknown, and the overall result is total selling price minus total cost price.
Let the cost price of the first article be Rs \(x\); its selling price \(=1.15x\)
Selling price of the second \(=x\) (equal to the cost price of the first)
Cost price of the second \(\displaystyle =\frac{x}{0.8}=1.25x\) (it is sold at a 20% loss)
Total selling price \(=1.15x+x=2.15x=64.50\), so \(x=30\)
Total cost price \(=30+1.25\times30=30+37.50=\) Rs 67.50
Result \(=64.50-67.50=-3\), a loss of Rs 3
Karan makes an overall loss of Rs 3.